Euro Canals News

Your most trusted news channel

The Department of Trade and Industry (DTI) is targeting to implement the incentives strategy for electric vehicles (EVs) by early next year.

Trade Undersecretary Rafaelita M. Aldaba presented the proposed Electric Vehicle Incentive Strategy of the government at a virtual forum on Thursday. Initially, the DTI aims to provide a total of P83-billion fiscal support for EVs.

However, Aldaba told the BusinessMirror that the agency is “recalibrating” the figure because “we are reviewing assumptions that we used in estimating demand for EV especially given the pandemic and changes in consumer behavior and other developments along with the assumptions used in estimating fiscal support.”

“Currently, [however] there are income-based incentives like income tax holiday and duty or tax-free importation of capital equipment and raw materials and other fiscal incentives available to EV and EV parts manufacturing and charging facilities through the [Corporate Recovery and Tax Incentives for Enterprises] CREATE Act,” she added.

Under the Proposed Electric Vehicle Incentive Strategy, the DTI wants to provide time-bound, targeted, performance-based and transparent fiscal and non-fiscal support in order to attract EV and EV parts manufacturing, particularly electronic parts and other strategic components, batteries, charging stations, and the establishment of testing facilities.

It also aims to narrow the cost gap between EVs and traditional motor vehicles and enable the shift to EV in line with its goal of achieving production targets within 10 years from the promulgation of the incentive strategy.

Aldaba also said the DTI and other concerned agencies aim to release the implementing rules and regulations (IRR) of Republic Act 11697 or the Electric Industry Development Act (Evida).

Under Section 30 of the said Act, t he Department of Energy (DOE) together with the Department of Transportation (DOTr) shall, in coordination with the DTI, and in consultation with other relevant government agencies and public and private stakeholders, issue the IRR within 120 days upon the effectivity Evida, which lapsed into law last April 15.

In May, a month after the enactment of Evida, Lopez said that with the said law, “the Philippines is now in a stronger position to further attract hi-tech investments and create high-value jobs in the country by taking advantage of the ongoing global shift to EVs [electric vehicles] through strong national policy support.”