EV perks don’t need to mirror CARS program, DoJ says

THE Department of Justice (DoJ) said that the government’s electric vehicle (EV) incentive strategy does not need to replicate an earlier automotive program in full, giving policymakers flexibility in crafting support measures for the sector.

In a legal opinion dated March 5, addressed to Board of Investments (BoI) managing head Ceferino S. Rodolfo, the Justice department said the Electric Vehicle Industry Development Act (EVIDA) only requires that the incentive framework be “similar” to the Comprehensive Automotive Resurgence Strategy (CARS) Program.

“The EV incentive strategy to be adopted under the EVIDA does not need to mirror the CARS Program in its entirety. Section 24 of the EVIDA only requires that the EV incentive strategy be similar, not identical to the CARS program,” Justice Secretary Fredderick A. Vida said.

The clarification was sought by the BoI, an attached agency of the Department of Trade and Industry, as it prepares an Electric Vehicle Incentive Strategy under Republic Act No. 11697. Officials had raised whether the EV incentives must strictly follow the structure of the CARS Program, which used a Tax Payment Certificate (TPC) system.

The DoJ said the law’s wording is clear and should be interpreted based on its plain meaning, noting that “similar” does not equate to “identical.”

It added that the EV strategy must instead be tailored to meet EVIDA’s specific goals, including narrowing the cost gap between EVs and conventional vehicles, attracting investments in manufacturing and components, and setting production targets. On incentives, Mr. Vida said the government is not limited to using TPCs.

“The EV incentive strategy… may use any legal incentive mechanism,” it said, including but not limited to tax credit certificates. — Erika Mae P. Sinaking