The Ministry of Trade and Industry has asked the Tariff Commission to remove tariffs on electric vehicles from any source for a period of five years, in line with the government’s promotion of electric motors. cleaner.

Economic leaders have previously spoken of the need to promote electric vehicles as a way to mitigate the impact of the Russia-Ukraine crisis on the transport sector.

DTI officials told a public hearing conducted by the TC on Friday that the tariff suspension for the next five years would support the accelerated adoption of electric vehicles as a viable mode of transportation to reduce oil consumption.

The Department of Energy, which submitted a similar petition to the National Economic Development Authority, also said temporarily removing tariff rates on electric vehicles would ensure energy security, in line with the Philippine Energy Plan 2020 to 2040 which indicates the direction for 10% penetration rate of EVs in the road transport sector.

The move will also reduce the nation’s reliance on imported fuel for the transportation sector and support the transition to emerging technologies, DOE officials said.

Energy officials said the tariff suspension would broaden market sources, promote prolonged growth in the domestic electric vehicle industry and encourage consumers to consider acquiring electric vehicles over conventional ones.

The data showed that in February 2022, there were 13 battery EV models, 22 hybrid EV models and six plug-in hybrid EV models available in the country.

Based on market prices, the cost of acquiring an electric vehicle can vary from 1.6 million pesos to 9.49 million pesos. Electric trucks range in price from 3.7 million to 15.8 million pesos, while light electric scooters and e-bikes cost between 7,000 and 48,000 pesos per unit.

Prices for e-scooters and e-motorbikes range from P20,000 to P125,000.

Japan was the top supplier of fully-built electric vehicles from 2019 to 2021, accounting for 74% of total imports. It was followed by China with 25% and the rest by Thailand, Singapore, Taiwan, the United States, South Korea and Europe.

The data also showed that imports of lithium-ion batteries for electric vehicles rose sharply from 22 units in 2019 to 6,762 units in 2020, but fell 10% to 6,084 units in 2021.

The majority of lithium-ion batteries, about 98%, came from China, with the rest from Hong Kong, South Korea, Japan, Taiwan, Indonesia and Singapore.

The Tariff Commission has requested position papers and comments from groups, agencies, and/or individuals on reducing electric vehicle rates, by May 16, 2022.