Fiscal incentives for EV buyers in the works -- EVAP

If you’re in the market for an electric vehicle (EV), you might be able to get discounts for one in the future.

Electric Vehicle Association of the Philippines (EVAP) president Edmund Araga told AutoFun Philippines that the government is working on fiscal incentives for people who buy an EV.

“Kasi yung direction ng [The direction of] EVIDA, more on manufacturing,” Araga said on the sidelines of the Nov. 24, 2022 launch of Solarius EV Charging in Makati City.

“Incentives are being passed through CREATE law and under the EVIS strategies of DTI (Department of Trade and Industry),” he added. “So may [there are] different program naman from a different government sector na naka-support sa [that supports] EVIDA.”

EVIDA stands for the Republic Act 11697 or the “Electric Vehicle Industry Development Act,” which lapsed into law on Apr. 15, 2022, until then-President Rodrigo Duterte.

It does not include discounts and tax perks that EV buyers in other countries enjoy.

Under the Tax Reform for Acceleration and Inclusion Law, or TRAIN Law, the government currently provides excise tax exemptions for Battery EVs. It also imposes 50% of the excise tax rate for Hybrid EVs.

However, Section 28 of the EVIDA’s implementing rules and regulations currently pushes for creating an EV incentive strategy for manufacturers that includes a provision for future government subsidies for EV buyers.

Meanwhile, CREATE stands for Republic Act 11534 or the “Corporate Recovery and Tax Incentives for Enterprises” Act, which reduces corporate income tax rates and rationalizes tax relief measures for Philippine businesses.

Finally, EVIS refers to the DTI’s Electric Vehicle Incentive Strategy which the agency said is a “fiscal and non-fiscal support program for the transport sector to enable its transition from traditional motor vehicles to electric vehicles.”

Prioritizing COVID-19 recovery

Araga said incentives were not yet included in EVIDA as the country is still recovering from the economic damage caused by the COVID-19 pandemic in 2020.

“Based sa mga lawmakers, kaya muna nila hindi sinama yung incentives kasi, coming from the pandemic situation, wala masyado pang funding yung government,” he said. 

[Translation: Based on what lawmakers said, the reason they didn’t include incentives was because, coming from the pandemic situation, the government doesn't have much funding yet.]

“Pwede namang i-elevate 'yun through amendments,” Araga added. “But ang pinaka-best noon is meron nang simula.”

[Translation: The incentives can be elevated through amendments to the law. But the best thing is that there is already a start.]

Instead, EV owners in the Philippines get non-fiscal incentives until April 2030.

These include exemptions from number-coding schemes implemented by the Metropolitan Manila Development Authority and local government units. 

In addition, EV owners get priority at the Land Transportation Office (LTO) for all their registration concerns, along with a 30-percent discount for battery EVs and a 15-percent discount for hybrid EVs for the motor vehicle user's charge, vehicle registration, and inspection fees.

Aside from tax incentives for EVs, what other fiscal measures would tempt you to buy one?