The Philippines presents a comprehensive roadmap for the electric vehicle industry.
On April 15, 2022, law of the Republic (AR) No. 11697 or the Electric Vehicle Industry Development Act (EVIDA) lapsed without being approved or vetoed by the President.
The EVIDA will enter into force 15 days after its complete publication in the Official Gazette or in a newspaper of wide circulation. EVIDA was published in the Official Journal online on April 16, 2022.
The adoption of EVIDA is in line with the country’s policy to ensure its energy security and independence by reducing dependence on imported fuels for the transport sector. The law is instrumental in formulating regulations to promote an enabling environment for competitive, fair and non-discriminatory private sector participation.
EVIDA presents a comprehensive roadmap for the electric vehicle industry (CREVI)
The law establishes CREVI, which is a national plan for the development of electric vehicles (VE) with an annual work plan to accelerate the development, commercialization and use of electric vehicles in the country. CREVI is made up of four components, as follows:
- EV component and charging stations;
- Manufacturing component;
- Research and development component; and
- Human resources development component.
Incentives under EVIDA
EVIDA offers the following tax incentives:
- The manufacture and assembly of electric vehicles, charging stations, batteries and their parts and components must undergo an evaluation process to determine their (i) inclusion in the priority plan of strategic investment and (ii) the eventual right to the incentives for the planned duration. under amendments introduced by the Business Recovery and Tax Incentives Act or CREATE (RA No. 11534) to the General Investment Code of 1987 (Executive Order No. 226) and the National Tax Code of 1997 (RA No. 8424).
- The importation of fully-built electric vehicles will generally be eligible for incentives under the TRAIN Act (RA No. 10963).
- The importation of fully constructed charging stations is exempt from paying duties for eight years from the entry into force of EVIDA.
- Use of battery-powered EVs and hybrid EVs qualify for a 30% and 15% discount, respectively, on the payment of the motor vehicle charge, vehicle registration and vehicle registration fees. inspection for eight years from the entry into force of EVIDA.
EVIDA also provides the following non-tax incentives:
- Priority registration, priority renewal of registration and issuance of a special type of vehicle plate.
- Exemption from mandatory unified vehicle volume reduction program, digital coding system or other similar systems implemented by different government agencies.
- Fast processing of franchise applications and renewals to operate public utility vehicles for operators who exclusively use electric vehicles.
- Fast processing by the Customs Office of imports from EV manufacturers and importers.
- Permit for foreign nationals to be employed under technology transfer agreements, subject to guidance from relevant government agencies.