INCENTIVES for electric vehicle (EV) manufacturers could also include tax breaks on parts imports to boost domestic production and consumer adoption, the Department of Transportation said on Thursday.
Transportation Secretary Jaime J. Bautista said at an international motor show organized by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) in Pasay City that the tax break proposal for parts was put forward by President Ferdinand R. Marcos, Jr. as part of the expansion of incentives to be offered under the Electric Vehicle Industry Development Act (EVIDA).
Mr. Bautista said the proposal was made during a recent cabinet meeting.
“The President would like to study the possibility of extending incentives not only for whole-EV imports but also parts because we can assemble or manufacture EVs here in the Philippines. Some parts will be imported,” Mr. Bautista said.
According to Mr. Bautista, the incentive scheme is still being studied by the Department of Trade and Industry (DTI).
Executive Order No. 62, signed by Mr. Marcos on June 20, extended the zero-tariff policy on EVs and parts through 2028. The order also expanded the coverage of zero tariffs to e-motorcycles, e-bicycles, nickel metal hydride accumulator batteries, e-tricycles and quadricycles, hybrid EVs and plug-in hybrid EV jeepneys or buses.
In a recent statement, Malacañang cited the need for an incentive policy for potential investors in the EV industry.
It added that the DTI has been drafting a strategic roadmap under the EVIDA which will define the possible incentives.
EVIDA sets a quota for EV adoption in organizations with vehicle fleets. One of the law’s components is the Comprehensive Roadmap for the Electric Vehicle Industry, which aims to establish the country as an EV producer and exporter by 2040.
Separately, CAMPI President Rommel R. Gutierrez said the industry is expecting a 10% increase in EV sales this year.
“Last year, there were 10,000 hybrid and pure EV (units sold). Definitely, 10,000 units sold will be surpassed this year. We’re confident (sales will exceed last year’s by) 10%,” he said.
As of Oct. 18, 25,196 EVs were registered and served by 705 EV charging stations, according to the Palace. — Revin Mikhael D. Ochave
