Bill that seeks to amend Evida law filed in House

A man rides his electric scooter in Pasay City. PHOTO BY J. GERARD SEGUIA

MANILA, Philippines: House Assistant Majority Leader and Puwersa ng Bayaning Atleta Party-list Rep. Margarita “Migs” Nograles has filed a bill that seeks to amend the Electric Vehicle Industry Development Act (Evida) that excluded two-wheeled vehicles from the grant of import tariff exemptions.

House Bill 9574, which was filed last Nov. 20, will amend provisions of the Evida law which was passed last year to promote and accelerate the development and commercialization of electric vehicles (EVs).

Nograles said that despite the huge share of two-wheeled electric vehicles (EVs) vis-à-vis four-wheeled EVs in the market, “the tariff structure imposes higher upfront costs on electric two-wheelers, making them less economically attractive to consumers compared to conventional gasoline-powered two-wheelers.”

“This situation creates a significant barrier to the growth of the electric vehicle industry, impeding environmental sustainability efforts and hindering the transition to clean transportation,” she added.

Her proposed amendments seek the temporary reduction of the Most Favored Nation (MFN) tariff rates for all electric vehicles.

The lawmaker said that lowering the tariff burden enhances the affordability and competitiveness of EVs, especially two-wheelers.

“The temporary nature of this reduction recognizes the need to provide immediate support to the industry while allowing for a reassessment of tariff rates in the future,” she added.

The lawmaker also called for a zero percent MFN tariff rate on two-wheeled EVs for the next five years.

“This measure aims to eradicate tariff-related barriers entirely, signaling a strong commitment to promoting the growth of the electric vehicle market. By demanding a zero percent MFN tariff rate, the amendment aligns with global efforts to incentivize the adoption of clean and sustainable transportation,” Nograles said.

She added that lower tariff rates would incentivize consumers to choose electric two-wheelers over conventional vehicles. This would lead to higher market demand that will stimulate investment in the EV industry, promote the establishment of manufacturing facilities that will create employment opportunities, and contribute to the reduction of greenhouse gas emissions.