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Home Business DoF bucks VAT exemption for e-vehicles

DoF bucks VAT exemption for e-vehicles

 

THE Department of Finance (DoF) is not in favor of a measure seeking to provide value-added tax (VAT) exemption for electric vehicles (e-vehicles), according to a department official.

During the Senate Committee on Energy’s hearing on e-vehicle adoption in the country, Finance Undersecretary Bayani Agabin said that, although his agency supported the purpose of the bill, they were concerned about the VAT exemptions being offered in it.

He explained that the DoF had attempted to limit such exemptions granted under Republic Act 10963, or the Tax Reform for Acceleration and Inclusion (Train) Act, in order to have “a wide tax base.”

“The proposal to grant VAT exemptions to the sale of e-vehicles is not the proper way to incentivize [its sales]. We have enough laws. We have [the] BOI (Board of Investments), which grants tax holidays [and] duty-free imports. They can avail [themselves] of that,” he said.


For his part, Sen. Sherwin Gatchalian, who heads the committee, said he would review the department’s stand on the matter.

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