It aims to boost local manufacturing of electric vehicles (EVs) and attract investments in the country’s automotive industry.
On Wednesday, July 29, President Ferdinand Marcos Jr. signed Executive Order (EO) No. 121 that establishes the Electric Vehicle Incentive Strategy (EVIS) Program, which provides fiscal incentives for local manufacturers of hybrid and battery electric passenger cars, commercial vehicles, and their parts and components.
This program also aims to expand domestic EV production, create quality jobs, reduce the country’s dependence on fossil fuels, and position the Philippines as a regional automotive manufacturing hub.
“The EVIS Program shall provide time-bound, targeted, performance-based, and transparent fiscal support to encourage strategic investments in domestic EV manufacturing,” the order read.
According to the EO, the qualified manufacturers may register up to two EV models and receive two types of incentives: the Fixed Investment Support (FIS) to help establish or expand manufacturing facilities, and Production Volume Incentives (PVI) to encourage local production.
Participants will also receive Tax Payment Certificates, which may be used to settle certain national taxes and import duties.
To qualify, participants must undertake new investments, commit at least PHP5 billion in capital, meet production targets, and introduce their locally manufactured EV models within three years from registration.
The EVIS Program also has a maximum incentive ceiling of PHP60 billion, with up to PHP15 billion available for each enrolled EV model, subject to the annual budget process.
The regular monitoring of registered participants is also required to ensure compliance with their investment commitments and production targets.
Lastly, the Board of Investments (BOI) will lead the implementation of the program, with support from an inter-agency committee composed of the Department of Finance, Department of Energy, Department of Transportation, and Department of Budget and Management.
The said order comes days after the President emphasized during his State of the Nation Address on Monday (July 27) that the government is speeding up the use of electric vehicles (EVs).
The move, he told, is part of the government’s clean energy program to help build a greener and more sustainable future.
He said, “Consistent with our clean energy drive, we have encouraged the adoption of electric vehicles. We have removed all tariffs on EVs until 2028 to bring down market prices, and the government has also been mandated to prioritize electric vehicles in their refleeting plans.”
PBBM also said the program will help spur growth of local industries across the EV value chain and emphasized the long-term goal: “Mithiin natin na sa pagdating ng 2040, kalahati ng mga sasakyan ay EV na.”
President Marcos also noted modern EVs are already being used in various public transportation kodes such as the revived Love Bus and the Pasig River Ferry System.
“Ang ilang makabagong Love Bus at ang articulated bus na gagamitin sa Davao City ay mga EV. Ang M/B Dalaray naman, na pinasinayaan natin kamakailan lamang, ay isa ring EV, na nabuo sa pagtutulungan ng UP at DOST. Sa darating na panahon, ang ganitong electric ferry boat ang gagamitin sa Pasig River Ferry Service, mula Pinagbuhatan sa Pasig hanggang Escolta sa Maynila,” the Chief Executive noted.
Lastly, he also asked: “Kaya hinihiling ko ang suporta ng buong industriya upang mapaandar na natin sa lalong madaling panahon ang ating minimithing modernisasyon ng mga pampublikong sasakyan. Titiyakin natin na magiging makatao, magaan, at makatarungan ang pagpapatupad nito.”
