Group backs measure giving tax incentives to e-vehicles

MANILA, Philippines - The Electric Vehicle Association of the Philippines (EVAP) expressed its full support for the Alternative Fuels Vehicles Bill now pending in Congress

In its position paper, EVAP said the bill, originally filed by Sen. Ralph Recto as Senate Bill 2856 with counterpart bill filed at the House of Representatives by Rep. Hermilando Mandanas of Batangas during the 15th Congress, remains pending in both chambers.

In today’s 16th Congress, the AFV Bill was re-filed by Sen. Recto with Sen. Antonio Trillanes and Sen. Bam Aquino filing two other versions. In the Lower House, different versions of the AFV bill were filed by Reps. Rufus Rodriguez, Abby Binay, Rodolfo Biazon and Mark Villar.

EVAP president Rommel Juan said the organization welcomes the inclusion of both electric and hybrid vehicles in all versions of the bill.

“We have been at the forefront of EV development and local assembly in the country and have even launched an ambitious campaign to have one-million EVs on the road by 2020,” Juan said.

To push the application of EVs, Juan said that EVAP has identified the public sector application as the proper launching pad for EVs as they represent a compatible solution to both transport and environmental problems.

Among the salient features of the AFV bills is a nine-year exemption from value-added tax (VAT) and excise tax.

“Since EVAP estimates that it would take about ten years to fully develop the local EV industry, it is asking that a nine-year exemption be given for VAT and excise tax,” Juan said.

He said the government would not lose anything if it implements these tax benefits compared to the expected gains.

When the industry is fully developed, that will be the time when the industry is ready to pay full taxes, he said.

Juan said EVAP aims to promote local manufacturing of electric vehicles and would like to have as much local value added in terms of labor, parts and components as much as possible.  

“As an example, an eJeepney currently costs P750,000. But if you take out the taxes and duties, it will only cost P587,000. This 22 percent decrease in the selling price will benefit the EV manufacturer and ultimately trickle down to the operators and the jeepney riders”.

The group also wants exemption from registration charges.

“This is a charge that all motorists must pay for when they register a vehicle with the Land Transportation Office. But an exemption will definitely be appreciated by EV users and would definitely help boost EV sales,” Juan said.

He also proposed free dedicated parking spaces in new establishments for EVs.

“EVAP proposes that new real estate developments allocate free dedicated parking spaces for EVs, similar to those reserved for persons with disabilities,” he said.