Incentives for e-vehicle manufacturers pushed

MANILA, Philippines - A group of electric vehicle manufacturers, importers and dealers, is pushing for the passage of legislative bills seeking to provide incentives for the sector, as well as the imposition of zero duty on imported parts and components as these would help it become competitive in the region.

In a statement yesterday, the Electric Vehicle Association of the Philippines (EVAP) said it supports bills providing incentives to EV manufacturers or assemblers and importers.

“We believe that House Bill (HB) 5460 which has been approved and Senate Bill (SB) 2856 which is still pending will make us competitive in the region and probably make us the manufacturing hub for both EV parts and vehicles in the region,” EVAP president Rommel Juan said.

HB 5460 which seeks to provide various incentives for EV manufacturers or assemblers for a period of nine years, has been approved on third and final reading.

Under the proposed measure, the payment of excise tax by EV manufacturers or assemblers shall be waived.

EV manufacturers or assemblers shall also be exempt from payment of value-added tax (VAT) for the importation of raw materials, spare parts, components and capital equipment.

The HB states the sale of raw materials, spare parts, components and capital equipment used in the manufacture or assembly of EVs will be subject to zero-percent VAT.

Under the proposed measure, EV importers meanwhile, shall be exempt from payment of excise taxes and duties for four years.

The same incentives are also to be provided under the counterpart SB 2856.

“We hope the Senate approves the pending bill so as to help re-energize the domestic auto parts making industry where member companies are operating at below 50 percent of their rated plant capacities and on which some 50,000 employees are dependent upon,” Juan said.

As for the imposition of duties on imported completely built-units (CBU) of EVs, he said the EVAP has made its position very clear to the Tariff Commission.

“We are very firm in our full support for the local manufacture of EV parts and components and the local assembly of all electric vehicles,” he said.

In its position paper sent to Tariff Commission chairman Edgardo Abon, the EVAP said that if the EV is imported as a CBU, it should be imposed a duty as high as 30 percent.

The EVAP also said the sector wants to be allowed to import parts and components which cannot be sourced locally, as well as capital equipment, and raw materials for EV manufacturing and assembly at zero percent duty.

The measures being pushed, Juan said, are seen to result in providing the much-needed relief to EV manufacturers, assemblers, importers and suppliers and may even lead to reduction of some 30 percent in the selling price of the environment-friendly vehicles.

“This is the reason we hope these initiatives are acted upon with dispatch,” EVAP groups EV manufacturers, assemblers, importers, suppliers, dealers, distributors, enthusiasts as well as the academe.