EV incentives strategy out by yearend —DTI

The planned executive order (EO) setting up an incentives scheme for the country’’s electric vehicle (EV) sector will likely be issued by the end of the year, an official of the Department of Trade and Industry (DTI) said Thursday.

DTI Undersecretary and Board of Investments managing head Ceferino Rodolfo told reporters on the sidelines of the 12th Philippine Electric Vehicle Summit in Pasay City that “we aim to have the EVIS issued before the end of the year.”

EVIS or the Electric Vehicle Incentive Strategy, which would be implemented through an EO, contains the government’s fiscal perks, which would be patterned after the Comprehensive Automotive Resurgence Strategy (CARS) program for manufacturing of EVs in the Philippines.

Rodolfo said the plan to issue the EVIS before the year ends is also in response to President Ferdinand Marcos Jr.’s directive to incentivize electric mobility.

Under the proposed EVIS, the DTI-BOI, tasked with coming up with the EV incentive strategy under the Electric Vehicle Industry Development Act (EVIDA), recommends two kinds of fiscal support for EV manufacturers that are similar to the CARS program, namely Fixed Investment Support (FIS) and Production Volume Incentives (PVI).

Both FIS and PVI are in the form of income tax deductions, through the issuance of an Income Tax Deduction Certificate (ITDC), which can be used for a period of 10 years from the start of commercial operations.

FIS covers the total capital expenditure for tooling, equipment, research and development costs, and engineering changes to manufacture the model, including initial expenses and training costs for the start-up operation, excluding land.

PVI will be computed based on a percentage of the profit margins for each unit sold to the market.

Under the initial EVIS, Rodolfo said the DTI-BOI proposes the following:

• Cars, PUV, Bus, Trucks: FIS of 50% for battery electric vehicle (BEV) and 40% for hybrid electric vehicle (HEV) plus PVI
• Motorcycles: FIS of 50% for BEV and 40% for HEV plus PVI
• Parts and components: 50% FIS

Electric Vehicle Association of the Philippines president Edmund Araga said the group is supporting any incentive schemes that would further boost the EV industry in the country.

“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.

The EVAP president said that the industry has a goal of selling 2.45 million EVs and opening up to 65,000 EV charging stations nationwide by 2028.

In his remarks during the Philippine International Motor Show, Transportation Secretary Jaime Bautista said that the President is directing to expand the package of incentives extended to manufacturers and users of electric vehicles under the EVIDA.

“Our push for e-vehicles has the solid backing of the President himself,” Bautista said. — VBL, GMA Integrated News