EO provides incentives to e-vehicle production
MANILA, Philippines — The Marcos administration has created a program providing incentives to electric vehicle investors, citing the need to take advantage of market opportunities arising from the global transition to electric mobility.
Executive Order 121 signed by President Marcos on July 29 adopted the Electric Vehicle Incentive Strategy (EVIS) program to promote the manufacturing of EVs, including their parts and components, lure investments and develop the country as a regional automotive manufacturing hub.
The program provides fiscal support for the manufacture of hybrid and battery EVs, specifically passenger cars and commercial vehicles.
“There is a need to implement the EVIS Program to enable the country’s EV industry to seize market opportunities arising from the global transition to electric mobility, deepen its participation in the regional supply chain, strengthen the country’s manufacturing base and contribute to sustainable economic growth and the attainment of the State’s energy security and environmental objectives,” the order read.
The Board of Investments (BOI), which will serve as the lead implementing and coordinating agency of the program, has been tasked to oversee its implementation, promulgate the guidelines to implement the EO within a month from its effectivity and coordinate EV industry development efforts with all concerned agencies.
The BOI will be the chair of the Inter-Agency Committee on Electric Vehicle Industry Development, which will administer and implement the program.
The committee will be composed of an undersecretary-level representative from the finance, energy, transportation and budget departments.
Its functions include evaluating applications for registration under the EVIS Program; recommending to the BOI the issuance of a certificate of registration for the participant and impose the corresponding terms and conditions; assessing the eligibility of registered participants for fiscal support; recommending to the BOI the approval for entitlement to fiscal support; monitoring overall EVIS performance and audit compliance of the program; recommending to the BOI actions on requests of a registered participant in the program; and recommending to the BOI the withdrawal or forfeiture of the fiscal support in the event that the registered participant fails to comply with the terms and conditions of its certificate of registration.
Applicants may apply for the enrollment of up to two EV models under the EVIS Program.
Registered participants under the program may be entitled to fiscal support that fall under two categories, namely fixed investment support to help establish or expand manufacturing facilities; and production volume incentives to encourage local production.
Eligible participants will be given non-transferable tax payment certificates, which may be used to settle their tax and duty obligations to the government.
To qualify, participants must undertake new investments, commit at least P5 billion in capital, meet production targets and introduce their locally manufactured EV models within three years from registration.
The program has a maximum incentive ceiling of P60 billion, with up to P15 billion available for each enrolled EV model.
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