According to the Department of Trade and Industry, the Philippines is hoping to position itself in the global electric vehicle (EV) value chain “by developing a sustainable, inclusive and industrialized economy.”
Trade chief Alfredo Pascual was present at the signing of a lease agreement between Envirotech Vehicles Inc. (EVT) and Berthaphil Inc. recently.
“Your investment forms part of the Philippine EV manufacturing ecosystem we are developing. We seek to create an end-to-end value chain from the mining and processing of green metals to the local manufacture of batteries, charging stations or units, and EVs,” Pascual said.
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EVT is a US-based transportation industry provider, specializing in all-electric vehicles for commercial and industrial use. EVT wants to enter the Philippines by establishing a manufacturing plant for EVs at the Clark Freeport Zone.
The Philippines has passed several pieces of legislation that will aid and promote the local EV industry.
The Comprehensive Roadmap for the Electric Vehicle Industry (CREVI) and the Electric Vehicle Industry Development Act (EVIDA) will require the government to implement and allocate 5% of its fleet to EVs.
Under the EVIDA Act, fiscal and non-fiscal incentives are provided to encourage the purchase and utilization of EVs by Filipino consumers. DTI through the Board of Investment (BOI) shall recommend an EV incentive strategy (EVIS) to the Fiscal Incentives Review Board (FIRB) for approval, similar to the Comprehensive Automotive Resurgence Strategy (CARS) Program to ensure the creation of an enabling business environment for the country’s EV industry.
Aside from tax incentives available under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, the importation of EVs is now duty-free under Executive Order No. 12, Series of 2023. The tariff rate of EV passenger cars, buses, mini-buses, vans, trucks, kick-scooters, and bicycles are reduced to zero for the next five years. This is complementary to DTI’s goal of encouraging EV investments by lowering its importation costs, introducing its viability to the public, encouraging a shift to less oil-dependent transport options, and improving the country’s energy security.
“Aside from our commitment to combat climate change through the use of EVs, the DTI also aims to aggressively position the Philippines in the battery segment of the global market,” Pascual said. “Given the presence of abundant nickel and cobalt reserves, the Philippine government is consistently promoting the country as a potential manufacturing hub for battery production.”
Categories: Business Features
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