Tax reform to boost electric vehicle industry – EVAP

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THE Electric Vehicle Association of the Philippines (EVAP) is optimistic that the tax reform program of the government will boost the electric vehicle industry.

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In a letter to the Senate committee, EVAP said it is grateful and that it appreciates the Senate and the House of Representatives for proposing that electric and hybrid vehicles be exempted from the excise tax.

The House of Representatives has approved House Bill 5636, and the Senate is now deliberating on Senate Bill 1408. Both bills cover the comprehensive tax reform package and include provisions for excise tax for automobiles. Both bills also exempt electric and hybrid vehicles from the excise tax.

On Tuesday, EVAP attended the consultative meeting organized by the Senate Ways and Means Committee on the proposed amendments to provisions on the excise tax on automobiles.

EVAP president Rommel Juan said in a statement there will be some form of incentive for the electric and hybrid vehicles which have long been enjoying various forms of incentives in the US, Norway, China, Thailand and Malaysia.

The industry needs the incentive to drive and promote the use of low and zero carbon emission alternatives nationwide, said EVAP vice president Edmund Araga.

“The Philippine automotive industry is enjoying an unprecedented boom and we want more and more
EVs and hybrids to take a slice of the automotive pie,” he said.

Under the proposed law, hybrid vehicles are exempted as long as “its drive system consists of an efficient combustion engine and a powerful electric motor which can run at least 30 kilometers under one full charge.”

Recently, the Japanese government turned over 24 units of hybrid Toyota Prius cars to the Philippine government.

“This is very timely so that we will be able to see more hybrid vehicles on the road— thus helping our advocacy of promoting the use of alternative-fueled vehicles nationwide,” Juan said.

“Thus, EVAP also supports the suggestion of the Department of Energy that other alternative fueled vehicles such as those using LPG and CNG be included in the exemption from the excise tax as well,” he said.

“This development is increasingly relevant as the Philippines is set to host the very first ASEAN Electric and Hybrid Vehicles Summit on June 29 to 30, 2017 at the World Trade Center,” he added.

The event is co-organized by EVAP, Board of Investments (BoI), Chamber of Automotive Manufacturers of the Philippines (CAMPI) and Manila Electric Co. Various members of CAMPI with EV and hybrid models will display their vehicles alongside locally-made EVs of EVAP member companies.

It has been estimated that as much as 40 percent of the vehicles to be produced by 2030 will be electric vehicles. “The Philippines must be at the forefront of these developments, as with government support we will work hard to achieve our dream of becoming the EV manufacturing hub of the ASEAN region,” Juan said.

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