DTI OKs proposed perks for e-vehicle production

MANILA, Philippines —  The Department of Trade and Industry (DTI) has cleared the proposed incentives strategy for electric vehicle (EV) manufacturing and aims to secure the Fiscal Incentives Review Board (FIRB)’s approval next month.

Trade Secretary Cristina Roque told reporters she approved the draft EV Incentive Strategy (EVIS) of the Board of Investments (BOI) on Wednesday.

With the proposal cleared, she said the EVIS would be transmitted to the FIRB today, June 13.

“We will coordinate with FIRB for its inclusion in the next meeting, most likely in July,” she said.

Under the EV Industry Development Act, the DTI, through the BOI, is tasked to recommend an EVIS to the FIRB for approval.

The EVIS forms part of the manufacturing component of the Comprehensive Roadmap for the EV Industry, which also focuses on the deployment of EV charging stations, as well as research and development and human resource development.

Through the EVIS, the government wants to narrow the gap between the cost of EVs and traditional motor vehicles to encourage EV adoption.

As part of the EVIS, the government will be providing time-bound, targeted, performance-based and transparent fiscal and non-fiscal support to attract EV and EV parts manufacturing.

In particular, the government wants to attract those engaged in electronic parts and other strategic components, batteries and charging stations, and the establishment of testing facilities.

The government is looking to provide fiscal support in the form of an income tax deduction certificate that can be used to defray income tax obligations during commercial operations.

Under the proposed EVIS presented by the DTI to stakeholders last year, the government is looking at a production target of 6.3 million EV units under the clean energy scenario (CES) or 1.7 million EV units under business as usual (BAU) by 2040.

It also sets a target of 147,000 EV charging stations under the CES or 42,000 EV charging stations under the BAU scenario.