The House of Representatives has approved a bill which seeks to impose a five-year zero tariff on imported electric vehicles, aiming to make sustainable transportation affordable and stimulate economic growth.

With 196 affirmative votes, House Bill No. 10960, which amends Republic Act No. 11697 (Electric Vehicle Industry Development Act) to redefine electric vehicles and set a zero tariff rate for the importation of fully built electric vehicles, has been approved on third and final reading.

“This will create healthy competition in the market and generate new jobs, especially as we gear towards increasing manufacturing,” said Puwersa ng Bayaning Atleta Party-list Representative Margarita Nograles, who sponsored the measure. 

“There will be losses in the next five years with the absence of tariffs, but the demand for electric vehicles is expected to rise, driving economic growth,” she added.

The bill defines electric vehicles as any two-wheeled, three-wheeled, or four-wheeled vehicle equipped with at least one electric drive for propulsion.

HB 10960 stipulates that fully assembled electric vehicles imported into the country will be subject to a zero percent tariff rate for a period of five years from the date the law takes effect.

Under the current system, tariffs are set at 30 percent for passenger cars and 20 percent for commercial vehicles. 

The proposed changes are expected to make electric vehicles more competitive, encouraging motorists to shift to cleaner transportation options.

Citing data from the Land Transportation Office, Nograles revealed that as of now, there are 17,519 registered electric vehicles, including buses and motorcycles. 

Based on the projections of the Electric Vehicle Association of the Philippines, this number could rise to 6.6 million by 2030.

“If demand increases, more people will buy electric vehicles, and money will circulate within the economy. This will bring gains not just to the industry but to the country’s overall economic health,” Rep. Nograles furthered.

Meanwhile, an executive order establishing an incentives scheme for electric vehicles is expected by the end of the year, according to the Department of Trade and Industry.

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