Solon files bill for EV tax exemption, more charging stations

Senate Bill 1382 wants to make owning an EV easy

The European Union and the US are already gearing toward a more eco-friendly drive towards the full electrification of vehicles by creating policies to make electric vehicle (EV) ownership more appealing. By comparison, emerging economies like the Philippines seem to be lagging behind.

Compared to owning a vehicle that runs on fossil fuel, owning an electric vehicle here in the country can sometimes be more expensive since there are really no incentives in place for owners.

One senator wants to change that by giving huge tax incentives and perks to owners, as well as business owners and operators.

Senator Sherwin “Win” Gatchalian, has filed Senate Bill 1382 or the Electric Vehicles and Charging Stations Act. Under the bill, all private and public buildings are required to dedicate parking spaces for EVs, as well as charging stations on gas stations or even parking lots.

What’s interesting is that the bill will also give certain tax exemptions related to VAT, importation duties, and discounts to LTO’s Motor Vehicle User’s Charge (MVUC).

“To parry the high cost of EVs until its eventual parity with ICE vehicles, fiscal and non-fiscal incentives are provided for the importation, utilization, and manufacture of EVs. This includes a 9-year exemption from value-added tax, customs duties, and discounts on the Motor Vehicle User's Charge as well as expedited registration procedures for EV users. Moreover, the Department of Trade and Industry and the Board of Investments are mandated to establish a time-bound, targeted, performance-based, and transparent EV incentive strategy to attract EV and EV parts manufacturing,” said senator Gatchalian.

The bill also provides a whole-of-government approach to the development of the EV sector. First it recommends the creation of a Comprehensive EV Roadmap to be undertaken primarily by the DOE together with the DOTR, DTI, BOI, and DOST. Second it assigns specific duties and responsibilities for these agencies including ERC, DENR, DPWH, and the LGUs to guarantee the law's effective implementation. This synergistic government policy framework will ensure that all aspects of the EV policy will be formulated and implemented by the most capable agency for that purpose.

“If implemented correctly, Mr. [senate] president, we estimate that the electrification of the Philippine fleet of vehicles could end up reducing oil consumption in the country by as much as 146.56 million barrels per year. This would create savings of 9.8 billion dollars of 490 billion pesos per year. Essentially, this bill is good for the environment and good for our wallets too,” added Sen. Gatchalian.