Remember when we reported that electric vehicles would have zero tariffs due to the implementation of Executive Order No. 12?

Back then, hybrids and plug-in-hybrids weren’t part of these tax reductions, giving the edge to their fully electric counterparts (battery-electric vehicles or BEVs). A recent approval by the National Economic and Development Authority (NEDA) board expands the benefits of Executive Order No. 12 to even more kinds of electrified vehicles.

The updated policy now removes the 30% import duty taxes on hybrids (HEV), plug-in hybrids (PHEVs), electrified PUVs and trucks, nickel-metal hydride accumulator batteries, and e-bikes and e-motorcycles. This means zero import duty taxes, which could further mean a noticeable price reduction for all these vehicles.

There are a couple of takeaways here, however. First is that mild hybrids—or vehicles that cannot move under their own electric power—are excluded.

Also, this EO will only be in effect until 2028, meaning all BEVs, HEVs, PHEVs, and other electric vehicles will regain the 30% import taxes unless the government further decides to extend the Executive Order.

For now, this is a great way to get the public to further embrace electrification, and also find a way to reduce emissions and pass on fuel savings to the consumers, as the infrastructure for supporting electric vehicles is still hard to come by.