DoF chief says EV incentive program to be released soon

THE DEPARTMENT of Finance (DoF) said the government expects the release of the Electric Vehicle Incentive Strategy (EVIS) soon as agencies continue to coordinate on the proposed incentive package aimed at accelerating electric vehicle (EV) manufacturing in the Philippines.

“It should be very soon,” Finance Secretary Frederick D. Go told reporters on the sidelines of an event late on Monday. “The government has steps that we need to take care of. We just need to go through that process.”

Mr. Go said the Board of Investments (BoI) is still finalizing the draft program in coordination with other government agencies.

“It’s still with BoI because it needs everybody’s cooperation up to the Department of Budget and Management (DBM),” he said.

“So, it’s still with BoI working with Fiscal Incentives Review Board, working with DBM, working with the Office of the President to look for that solution,” he added.

The EVIS is expected to provide targeted fiscal and nonfiscal incentives to encourage local production of electric vehicles, batteries, charging infrastructure, parts and testing facilities.

The program is modeled after the government’s previous automotive incentive program, including the Comprehensive Automotive Resurgence Strategy (CARS).

Based on recent consultations, the government is considering fiscal support of as much as P15 billion per participant for four-wheeled EV manufacturing, with as many as four participants expected to qualify under the program.

“That is the plan of BoI and we are supporting it,” Mr. Go said. “But who knows how it will finally end… So, we need to figure out the legalities.”

“It should come out soon… Meaning, we were all determined to make it happen, but I do not know how fast. But we already presented it to the President,” he added.

Trade Secretary Ma. Cristina A. Roque earlier said the EVIS aims to attract more EV manufacturers into the country, particularly as rising fuel prices increase interest in alternative transport technologies.

She said the Board of Investments and Fiscal Incentives Review Board are refining the EVIS framework, which aims to encourage more domestic value-adding activities and speed up the growth of the country’s EV industry alongside existing government incentives.

Existing incentives include benefits under the Electric Vehicle Industry Development Act such as number coding exemptions, excise tax exemptions, lower registration fees and import duty exemptions.

Ms. Roque said the government is targeting the issuance of the executive order and implementing rules and regulations by July.

The proposed EVIS package is larger than the P9-billion allocation under the Revitalizing the Automotive Industry for Competitiveness Enhancement  program, which had been intended to succeed the recently concluded CARS initiative.

Last week, Mitsubishi Motors Philippines Corp. said it plans to invest P7 billion in a hybrid EV manufacturing facility at its Santa Rosa, Laguna plant under the proposed EVIS, making it the first confirmed participant in the program.

EV adoption in the country has continued to grow. Data from the Chamber of Automotive Manufacturers of the Philippines, Inc. showed EVs accounted for 11.17% of new vehicle sales in the first quarter.

From January to March, CAMPI members sold 11,800 EVs, consisting of 8,261 hybrid EVs, 2,289 battery EVs and 1,250 plug-in hybrid EVs. — Justine Irish D. Tabile