Our previous column narrated the development of electric vehicles (EV) in the Philippines. This article tackles the fiscal and non-fiscal incentives, extended by RA 11697 or the Electric Vehicle Industry Development Act (EVIDA) to our EV users, operators, and importers.
A. Fiscal Incentives
Manufacturing
Those who opt to engage or are engaged in the (1) manufacture and assembly of EVs, charging stations, batteries, and parts and components; and (2) the establishment and operations of charging stations and other related support infrastructures such as research and development centers, training centers, testing centers, and waste treatment facilities shall undergo an evaluation process (i) to be included in the strategic investment priority plan; and (ii) receive possible incentives under Executive Order 226, otherwise known as the “Omnibus Investments Code of 1987.”
Utilization
Those using Battery Electric Vehicle (BEV) and Hybrid Electric Vehicle (HEV) shall be entitled to a 30 percent discount payment of the motor vehicle user’s charge, as well as vehicle registration and inspection fees for a period of eight years from the effectivity of the EVIDA. The Act defines BEV as an electrically propelled vehicle with only a traction battery as a power source for vehicle propulsion, while HEV as a vehicle with both a rechargeable energy storage system and a fueled power source for propulsion.
B. Non-Fiscal Incentives
EV users
1. Priority registration and renewal of registration, and issuance of a special type of vehicle plate by the LTO;
2. Exemption from the mandatory unified vehicular volume reduction program, number-coding scheme, or other similar schemes implemented by the Metropolitan Manila Development Authority, other similar agencies, and local government units;
3. Expeditious processing by the Land Transportation Franchising and Regulatory Board of applications for a franchise to operate, including its renewal, for PUV operators that are exclusively utilizing EVs; and
4. Availment of Technical Education and Skills Development Authority training programs on EV assembly, use, maintenance, and repair for its employees.
These non-fiscal incentives shall be valid for a period of eight years from the effectivity of the EVIDA.
Manufacturers and importers
The Bureau of Customs is tasked to adopt an expeditious process to govern the importation of parts and components for the manufacture and assembly of EVs. For those who will be working for EV manufacturers, the government will allow expert foreign nationals to be employed under a form of the technology transfer agreement, subject to the guidelines to be issued by the Department of Labor and Employment, the Professional Regulatory Commission, and the Department of Trade and Industry.
How soon will EVs replace fuel -based vehicles? Time will tell.
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For more of Dean Nilo Divina’s legal tidbits, please visit www.divinalaw.com. For comments and questions, please send an email to cabdo@divinalaw.com.