EV Incentives Strategy to Roll Out by Year-End — DTI

The Department of Trade and Industry (DTI) announced that an executive order (EO) to establish an incentives scheme for the electric vehicle (EV) industry is set for release by the end of 2024. DTI Undersecretary Ceferino Rodolfo shared that the Electric Vehicle Incentive Strategy (EVIS) will soon be implemented, providing significant tax breaks and fiscal perks aimed at accelerating EV production in the Philippines.

Patterned after the Comprehensive Automotive Resurgence Strategy (CARS) program, the EVIS will offer two main types of support to EV manufacturers: Fixed Investment Support (FIS) and Production Volume Incentives (PVI). These incentives will be delivered through an Income Tax Deduction Certificate, effective for up to 10 years from the start of production.

The proposed EVIS will extend:

• 50% FIS for battery electric vehicles (BEV) and 40% for hybrid electric vehicles (HEV) in categories such as cars, public utility vehicles, buses, and trucks.
• 50% FIS for BEV motorcycles and 40% for HEV motorcycles.
• 50% FIS for parts and components.

President Ferdinand Marcos Jr. has directed government agencies to prioritize and expand incentives under the Electric Vehicle Industry Development Act (EVIDA) to foster electric mobility.

The Electric Vehicle Association of the Philippines (EVAP) expressed its full support for the incentives, noting a target of 2.45 million EV sales and 65,000 charging stations across the nation by 2028.