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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
As part of the Philippine’s policy to ensure the country’s energy security and reduced reliance on imported fuel for the transportation sector, and to support electric vehicles (EVs) as an attractive and feasible mode of transportation – Republic Act (RA) No. 11697 or the Electric Vehicle Industry Development Act (EVIDA) was enacted.
Notably, and in line with the said State policy, the EVIDA provides incentives to the EV industry, which includes entities involved in the manufacture, importation, assembly, construction, installation, maintenance, trade and utilization, research and development, and regulation of EVs (Sec. 4(l), RA 11697).
Part of these incentives are tax and discount incentives.
1. Manufacturing.
The manufacture and assembly of EVs, as well as the following related elements shall undergo evaluation: charging stations; batteries; parts and components; and other related support infrastructure such as research and development centers, training centers, testing centers, and waste treatment facilities.
The above are evaluated to determine:
- Their inclusion in the country’s strategic investment priority plan; and
- Their possible entitlement to the incentives and for the length of time provided under the Omnibus Investments Code of 1987, and the relevant provisions of the National Internal Revenue Code of 1997, as amended by the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
2. Importation.
a. The importation of completely built units of EVs shall be entitled to the incentives under the Tax Reform For Acceleration Inclusion (TRAIN) Act.
However, in the case of imported electric jeepneys and electric tricycles, the Department of Finance, upon recommendation of the Department of Trade and Industry, may suspend the exemption in order to protect local manufacturers.
b. The importation of completely built units of charging stations shall be exempt from the payment of duties for eight (8) years from the effectivity of this Act.
c. The importation of capital equipment and components used in the manufacture or assembly of EVs and construction or installation of charging stations shall undergo an evaluation process to determine their inclusion in the strategic investment priority plan and possible entitlement to the incentives and for the length of time as provided under the Omnibus Investments Code of 1987, as amended, Title XIII of the National Internal Revenue Code of 1997, as amended, and other applicable laws.
3. Utilization.
The motor vehicle user’s charge imposed by the LTO under the Motor Vehicle User’s Charge Act, as well as vehicle registration and inspection fees, are discounted for the duration of eight (8) years, as follows:
- For battery electric vehicles (BEVs) – Thirty percent (30%) discount
- For hybrid-electric vehicles (HEVs) – Fifteen percent (15%) discount
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.
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