Toyota Philippines calls for inclusive tax incentives on electric vehicles

MANILA, Philippines – Toyota Philippines is prodding the government to provide an inclusive tax incentives to electric vehicles (EVs) to promote the electrification of the automotive industry and help mitigate the impact of climate change.

In an interview with Sunshine Cabrera, public relations head of Toyota PH, during last week’s 2023 International Ecotourism Travel Mart in Silang, Cavite, the carmaker representative said that incentives are important to sway Filipinos into shifting to EVs.

"But siguro, one of the ways of thinking ng customers kasi ngayon siyempre, 'pag electrified or hybrid, medyo mahal than regular," Cabrera said explaining the need for inclusive incentives to help the country move forward to using new technologies.

Toyota Philippines has yet to release a fully electric vehicle line in the country as it gears toward hybrid vehicles, noting the lack of infrastructure in the country.

"I think that would help not just the automotive industry but also other industries — kung motorcycle man — because it will also help promote the electrification of their products," Cabrera said.

Malacanang in January released Executive Order No. 12 series of 2023, which aims to lower the tariff rates for EVs and their components for the first five years.

However, this has received mixed reactions as it excluded electric motorcycles in the tax breaks, while the motorcycles comprise the majority of the country's transport mix with around eight million registered units to the Land Transportation Office.

Prominent stakeholders and think tanks are also vying for the inclusion of e-motorcycles in the tax breaks noting that the biggest number of motorists should not be excluded.

The electrification of transport is also part of the Philippine government's plan to hit its target to lower carbon emissions and comply with the Paris agreement to keep global warming below 2 degrees celsius.

Several landmark bills have also been passed to support this with the Republic Act 11697 or the Electric Vehicle Industry Development Act at its forefront.