Hybrid and PHEV import duties are now zero

Last year, Executive Order No. 12 was signed into law by President Ferdinand “Bongbong” Marcos Jr. (PBBM). This law which eliminated import duties on battery electric vehicles (BEV) compliments the Republic Act 11697, more known as the Electric Vehicle Industry Development Act or EVIDA, both of which have definitely helped in expanding the local EV market and made fully-electric vehicles more accessible.

Fast forward to today, it looks like not only BEVs will be able to enjoy zero import duties as the National Economic and Development Authority (NEDA) has approved the extension of EO 12 to include hybrid electric vehicles (HEV) and plug-in hybrid electric vehicles (PHEV), as well as electric motorcycles and bicycles.

Now what does this mean for our market? With hybrid vehicle options coming out left and right and becoming very popular, this simply means that they could soon become more affordable just like how many full EVs are now much more affordable than before. Typically, any electrified variant of any model is generally priced a few hundred thousands more.

Not only that, importation of parts for these vehicles will also now be cheaper thus making repairs and maintenance cheaper as well.

Do note however that these perks will only apply up until 2028, unless the government decides to extend this for more years.

This development certainly makes owning an electrified vehicle, whether hybrid or fully-electric, definitely much more enticing. Hopefully we get to feel its positive impact on the local automotive industry soon.