DOF: Zero tariff on EVs, parts to boost EODB By Reine Juvierre S. Alberto @reine_alberto
nessmirror.com.ph/2024/05/17/ neda-no-tariffs-on-electric-vehiclesparts-until-2028/)
HE zero-percent tariff on electric vehicles (EVs) and its parts and components will enhance the ease of doing business in the Philippines and advance the country’s climate ambitions, according to Finance Secretary Ralph G. Recto. This, after the National Economic and Development Authority (Neda) Board, the highest policymaking body of the agency and is chaired by the President, decided not to impose any tariffs on EVs, their parts, and components until 2028. (See: www.busi-
Tariffs are taxes imposed by the government to raise revenues. With the zero percent rate of import duty, this could spell possible losses in the much-needed revenues. In a statement by the Department of Finance (DOF) on Wednesday, Recto said this “strategic move” places the Philippines at the “forefront” of green technology, attracting “more sustainable” investments. “It will spur the creation of high-quality jobs, foster innovation, and offer Filipinos more
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eco-friendly vehicle choices. Ultimately, it will bring us closer to reaching our goal of reducing greenhouse gas emissions by 75 percent in 2030,” Recto said. The tariff exemptions on EVs also include e-motorcycles, ebicycles, nickel metal hydride accumulator batteries, e-tricycles, hybrid electric vehicles (HEVs), and plug-in hybrid electric vehicles (PHEVs) jeepneys or buses. The tariffs on these articles shall be reduced to zero percent until 2028. “With the expanded measure, EVs will be more accessible and affordable to consumers, thereby accelerating the country’s tran-
sition to environment-friendly transportation solutions,” the DOF said. Tariff exemptions on EV parts, components and completely knocked-down (CKD) EVs could incentivize interested parties to assemble or even manufacture in the country, which will boost the manufacturing sector and generate employment, the DOF added. Aside from the expanded EO 12, EV owners are exempted from the “number coding” road congestion measures and given priority registration and renewal with the Land Transportation Continued on A
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‘FOOD, OIL COSTS COULD
RISE ON PESO DECLINE’ By Cai U. Ordinario @caiordinario
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HE weakness of the Philippine peso may lead to higher food and oil costs in the Philippines, according to local economists and analysts.
Some analysts, such as Rizal Commercial Banking Corporation (RCBC) Chief Economist Michael L. Ricafort, told BusinessMirror it could lead to inflation averaging 4 percent in June and 4.4 percent in July this year. Nonetheless, Ricafort said, there is still a possibility that inflation will average 2 to 4 percent this year. This will justify rate cuts, especially if the United States Federal Reserve cuts rates. “[A] weaker peso [will] increase importation costs/prices and would lead to some pick up in overall prices/inflation,” Ricafort told this newspaper on Wednesday. “[This will also be] due to normalizing base/denominator effects, but 2024 average could still be within the BSP [Bangko Sentral ng Pilipinas] inflation target range of 2 percent-4 percent,” he added. Continued on A
SINGALONG OR SWIM-ALONG? Residents of Barangay 688 on Singalong Street in Malate, Manila, creatively beat the heat by setting up makeshift pools right in the middle of the street during the evenings. Despite occasional rains, Metro Manila, along with other regions in Luzon, Visayas and Mindanao, remains sweltering. This showcase of Filipino ingenuity not only cools down locals but also serves as a unique platform for politicians, with the pools proudly bearing their names. ROY DOMINGO
TIEZA ALLOTS P350M FOR DIVE SPOTS’ HYPERBARIC CHAMBERS By Ma. Stella F. Arnaldo @akosistellaBM Special to the BusinessMirror
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HE Tourism Infrastructure and Enterprise Zone Authority (Tieza) is alloting P350 million for hyperbaric chambers to be distributed in five destinations starting next year. In an interview, Tieza Assistant Chief Operating Officer Jetro Nicolas F. Lozada told the BUSINESSMIRROR that the destinations which will receive one hyperbaric chamber each were Boracay in Aklan, Dauin in Negros Oriental, Camiguin Island, Puerto Galera, and Daangbantayan in Cebu. “Barring any changes in shipping schedules, the supplier said the units will arrive in the first quarter of 2025,” he said, noting the conflicts in the Middle East, which have forced
cargo ships to traverse circuitous routes to transport products. Hyberbaric chambers are used to treat divers suffering from decompression sickness when they surface too quickly. This leads to the formation of nitrogen bubbles in the blood, causing fatigue and pain the joints and muscles. The Philippines was recognized as Asia’s Leading Dive Destination at the World Travel Awards last year. Dive tourism contributed some P73 billion in visitor receipts in 2023, almost double the P37 billion generated in 2022, according to the Department of Tourism (DOT).
Breaking ground in Boracay ON Tuesday, Tieza and its parent unit, the See “Tieza,” A
‘Power to import rice should not be returned to NFA’ By Ada Pelonia
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HE government should have explored other options for importation to obtain buffer stock, according to an economist. Roehlano Briones, a senior research fellow at the Philippine Institute for Development Studies (PIDS), issued the statement after the House of Representatives approved Tuesday the bill that seeks to amend the Rice Tariffication Law (RTL), giving the National Food Authority (NFA) the power to import rice as a last resort. “I think we could actually explore other options for being able to obtain the buffer stock... allowing other entities like Department of Trade and Industry [DTI] to do the importation on behalf of NFA, that could have been considered,” Briones told BusinessMirror via phone. Briones also expressed concern over the definition of “emergency.” “The current definition of emergency that is
used for buffer stocking is meant during calamity,” he said, partly in Filipino. “Apparently the definition is being taken or the association is being made that emergency includes instances of price increase and alleged manipulation,” Briones said. Under the new Section 6 of the bill, the Agriculture Secretary could declare an emergency which is referred to in the bill as a food security emergency under the conditions where there are: shortage in rice supply, sustained increase in rice prices, and extraordinary increase in rice prices. For Briones, this could be “problematic.” He worried that non-emergency cases [may be used], but for whatever reason it’s being invoked in order to allow the NFA to import...I find that problematic,” he said. According to the bill, the NFA would only Continued on A
PESO EXCHANGE RATES US 58.1190 Q JAPAN 0.3722 Q UK 73.8923 Q HK 7.4480 Q SINGAPORE 43.1502 Q AUSTRALIA 38.7363 Q SAUDI ARABIA 15.4971 Q EU 63.1056 Q KOREA 0.0427 Q CHINA 8.0300 Source: BSP (May 22, 2024)