5 Incentives in the EV Industry Development Act placed to lure in PH motorists

Is it finally time to make the jump?
by Drei Laurel | May 6, 2022
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PHOTO: Shutterstock

Are you someone who’s recently been considering shifting to an electric vehicle (EV)? You might still want to hold off on that a bit, because at the moment the Nissan Leaf is the only mass-market offering that runs solely on a battery—and that costs almost P3 million.

This predicament could change in the near future, though—at least if the country’s EV Industry Development Act is implemented the way it’s supposed to be.

On a wider scale, this new piece of legislation is supposed to make the country’s transportation landscape more welcoming of EVs. This, in turn, will hopefully convince more brands to bring these vehicles in and lower prices.

On a solely motoring level? The law wants to get more people onboard with the shift to EVs. Yes, lowering the prices of these vehicles will have the biggest impact here—but plenty of simpler incentives have been thrown in to help entice you guys as well. Here are five of the biggest ones.

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1) Exemption from the number coding scheme

Here it is, the big one. Choosing an EV means you will no longer have to be wary of being asked to come in to the office on your car’s coding day. Keep in mind that this applies to both apprehensions by the Metropolitan Manila Development Authority (MMDA), and enforcers from local government units (*cough* Makati City *cough*).

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This is nice and all, but do remember it’s unlikely this exemption will remain in place if EVs really do take off. And that’s still a big ‘if’ at the moment.

Since we’re in the business of license plates…

2) A special EV license plate

Yes, EVs will be issued a special type of license plate under the EV Industry Development Act. No details regarding this have been provided yet, but is should help EVs stand out even further on local roads. Well, if the blue exterior accents aren’t enough of a draw, at least.

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3) Registration perks

Details remain scarce as to exactly what ‘priority registration and renewal’ with the Land Transportation Office (LTO) under the EV Industry Development Act means. This could be anything from an expedited registration process to a special queue at satellite offices.

What is clear under the law is that EV owners will be entitled to motor vehicle users charge (MVUC) discounts: 30% off for full EVs, and 15% off for hybrids. Not bad.

4) Dedicated parking slots

If you consider hunting for a parking slot one of the worst things about car ownership, you may want to consider shifting to EVs once the EV Industry Development Act finally kicks in. Under the law, both public and private establishments are required to dedicate a portion of available parking spaces for EV use. In a building with 20 parking slots, at least 5% must be set aside for EVs.

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5) Excise tax exemptions

Under the law, EVs will be entitled to tax incentives under the Tax Reform for Acceleration and Inclusion (TRAIN) law. This means hybrids get 50% off applicable excise taxes, while EVs are exempted entirely.

Okay, this won’t affect motorists directly. At the very least, though, this will help entice car brands to increase volume, which in turn may reduce costs. Cheaper EVs has to be counted as a win here, right?

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