DOE hails expanded EV tax breaks

By Francis Allan L. Angelo

The Department of Energy (DOE) has welcomed the National Economic and Development Authority (NEDA) Board’s approval to expand tax breaks for two and three-wheeled battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and plug-in hybrid electric vehicles (PHEVs) until 2028.

The NEDA Board, chaired by President Ferdinand Marcos Jr., approved on May 15, 2024, the expansion of Executive Order (EO) No. 12.

Initially signed in February 2023, EO 12 eliminated tariffs on electric vehicles (EVs) and their components for five years but did not include two and three-wheeled EVs, HEVs, and PHEVs.

The revised policy now covers e-motorcycles, e-bicycles, nickel metal hydride accumulator batteries, e-tricycles, HEVs, and PHEV jeepneys or buses.

The expanded tax incentive program aims to make electric and hybrid vehicles more accessible and affordable for all consumers, promoting a shift away from fossil fuel dependency and reducing greenhouse gas emissions.

“By broadening the scope to include a wider range of electric and hybrid vehicles, we are not only simplifying environmentally friendly choices for consumers but also fostering innovation and growth within the country’s electric vehicle industry program, subject to an annual review,” Energy Secretary Raphael P.M. Lotilla said in a press statement.

According to the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI), the Philippines aims to have 311,700 EVs by 2028 and establish 7,300 EV charging stations (EVCS). As of April 2024, there are at least 563 registered EVCS charging points nationwide recognized by the DOE.

The Electric Vehicle Association of the Philippines (EVAP) also expressed support for the expanded tax breaks.

EVAP President Edmund Araga noted that the move would boost EV sales and encourage more consumers to switch to electric cars.

“Actually, the nice thing about this is that there were a lot of players that are increasing their sales. We’re happy and we appreciate the expansion of the tariff as to EO 12,” Araga said in ABS-CBNNews.com.

However, Araga expressed concerns that including hybrid cars in the zero-tariff scheme might affect pure EV sales. “Sana hindi na na-include ang hybrid kasi we cannot compete on the pricing,” he said.

Sales manager Ismael Borlagdan of MG Libis in Quezon City echoed the positive sentiment, hoping the government’s support would help increase their monthly EV sales from the current 4-5 units.

The DOE’s initiative, combined with the expanded tax incentives, aligns with the Philippine government’s goal of having half of the cars on the country’s roads be electric by 2040, a target that underscores the commitment to sustainable transportation and green technology growth. (With a report from ABS-CBNNews.com)