MANILA, Philippines - The Electric Vehicle Association of the Philippines (EVAP) expects the country to become a preferred destination for investments in electric vehicles once a measure providing incentives to manufacturers and sellers of alternative vehicles is passed into law, an official said.
“EVAP, the frontline industry association working for the early enactment admonishes that if the bill finally will be passed into law, it will lure investors to choose the Philippines as a more viable country in the region, a measure that is crucial to the electric vehicle industry’s launch as it passes currently a sensitive stage of development,†EVAP chairman and president Rommel Juan said in an email.
Last week, Senate Bill (SB) 2856 or the Alternative Fuel Vehicles Incentives Act was approved on third and final reading.
Under the proposed measure, importers, manufacturers and sellers of alternative fuel vehicles such as electric-powered cars and hybrid cars, will be given tax breaks.
Firms that will engage in the importation, manufacture or sale of these alternative fuel vehicles will be exempt from the payment of excise tax and value-added tax for nine years.
The move is expected to result in lower prices and wider access of clean and green vehicles.
SB 2856’s counterpart measure has long been passed in the House of Representatives.
The proposed measure is seen as a solution to issues that have prevented the industry from taking-off.