Philippine President Ferdinand R. Marcos, Jr. has approved zero tariff on electric vehicles to encourage consumers to use “cleaner and greener” cars.
The tariff removal will run for five years, according to a copy of Executive Order No. 12 dated Jan. 13 sent by the presidential palace. Electric vehicles will be slapped a 30% tariff after five years.
Zero tariff would also boost the local electric vehicle market and support the shift to emerging technologies, according to the order.
“The transportation sector is one of the largest sources of air pollution and energy-related greenhouse gas emissions in the country at 34%,” according to the order signed by Executive Secretary Lucas P. Bersamin. Cars account for 80% of these emissions, it said.
The National Economic and Development Authority board earlier proposed to cut the Most Favored Nation (MFN) tariff rate to 0% for five years on completely built-up electric vehicles. — Kyle Aristophere T. Atienza
This article originally appeared on bworldonline.com