EV perks rules out this year

EV perks rules out this year | Daily Tribune

The executive order (EO) establishing incentives for the country’s electric vehicle (EV) sector is expected to be released before the year ends, according to the Department of Trade and Industry (DTI).

“We aim to have the EVIS (Electric Vehicle Incentive Strategy) issued before the end of the year,” Trade Undersecretary and Board of Investments managing head Ceferino Rodolfo said in an interview on the sidelines of the 12th Philippine Electric Vehicle Summit on Thursday.

Rodolfo emphasized that the EO’s release is in line with President Ferdinand Marcos Jr.’s directive to promote electric mobility.

The Electric Vehicle Incentive Strategy, which will be enacted through the EO, outlines the government’s fiscal benefits for EV manufacturers. This strategy is modeled after the Comprehensive Automotive Resurgence Strategy (CARS) program, which supports the production of EVs in the Philippines.

Under the proposed EVIS, the DTI-BoI recommends two types of fiscal support for EV manufacturers, similar to the CARS program: Fixed Investment Support (FIS) and Production Volume Incentives (PVI).

Income tax breaks set

Both forms of fiscal support will involve income tax deductions through the issuance of Income Tax Deduction Certificates (ITDC), which can be used for up to 10 years from the start of commercial operations.

FIS will cover capital expenditures for tooling, equipment, research and development, and engineering modifications, as well as start-up expenses and training, excluding land costs. PVI, on the other hand, will be based on a percentage of profit margins for each unit sold in the market.

In the initial proposal for EVIS, the DTI-BoI suggests that cars, public utility vehicles, buses and trucks would receive 50 percent Fixed Investment Support for battery electric vehicles (BEVs) and 40 percent for hybrid electric vehicles (HEVs), along with Production Volume Incentives (PVI). The same 50 percent FIS for BEVs and 40 percent for HEVs would apply to motorcycles, with additional PVI. Parts and components would be eligible for 50 percent FIS.

In a separate press briefing, Electric Vehicle Association of the Philippines (EVAP) president Edmund Araga expressed support for the incentives.

“The two-year-old EVIDA is now in full swing. EVAP remains committed to monitoring and further pushing the implementation of every important aspect of the law,” Araga said.

Araga noted that the industry aims to sell 2.45 million EVs and establish 65,000 EV charging stations across the country by 2028.

Meanwhile, Transportation Secretary Jaime Bautista, speaking at the Philippine International Motor Show, confirmed that President Marcos is open to expanding incentives for both EV manufacturers and users under the EVIDA law.

“Our push for e-vehicles has the solid backing of the President himself,” Bautista said.