Hanoi (VNA) – The Philippines is moving closer to rolling out an incentive programme aimed at boosting domestic electric vehicle (EV) production, according to the Department of Finance (DOF).
Secretary of Finance Frederick Go said on May 13 the EV Incentive Strategy (EVIS) may be released soon. The EVIS has already been presented to President Marcos, but the Board of Investments (BOI) is still working with other agencies in the Fiscal Incentives Review Board (FIRB) on the details of the programme, he said.
Apart from the DOF and the Department of Trade and Industry (DTI), the FIRB is composed of the Department of Budget and Management, Department of Economy, Planning and Development and the Office of the President.
Earlier, Undersecretary of Trade and BOI managing head Ceferino Rodolfo said that the executive order (EO) for the EVIS is expected to be released before President Marcos’ State of the Nation Address, which will take place in July.
Based on consultations conducted by the DTI, the government is looking to provide a 60-billion PHP (1.03 billion USD) fiscal incentive package for the proposed EVIS, which will be open to manufacturers of four-wheeled EVs such as battery electric vehicles, hybrid electric vehicles and plug-in hybrid electric vehicles.
Under the proposed EVIS, there will be four participants, with each receiving 15 billion PHP worth of fiscal support in exchange for their investments in EV manufacturing.
Unlike the government’s previous vehicle manufacturing incentive programme - the Comprehensive Automotive Resurgence Strategy (CARS) programme, the proposed EVIS does not set a production volume target for participants. The proposed EVIS also has a higher fiscal package compared to the 27 billion PHP allotted under the CARS programme.
Under the CARS programme, the government offered fiscal support to firms that invest and produce at least 200,000 units of their enrolled vehicle model within six years.
Earlier, Secretary of Trade Cristina Roque said the government wants to fast-track the release of the EO on EVIS as the tensions in the Middle East have pushed up fuel prices and driven demand for EVs./.
