House Bill no. 10960 was just approved on its second reading in the House of Representatives. If enacted into law, this bill will bring some serious changes to the standing Electric Vehicle Industry Development Act (EVIDA).
The bill’s main thrust is a five-year amendment on the 0% tariff rate for the importation of fully assembled EVs. Ideally, that extended tax cut would invite more manufacturers and car brands which will then grow the local EV market.
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At the moment, the current 0% tariff rate is in effect until 2028, but House Bill no. 10960 aims to extend that until 2030. While it is a loss on taxes, the proponents of the bill are fervent on the creation of a competitive EV market. That market would not only sell new energy vehicles at a cheaper price, but also create more jobs in sales, manufacturing, and other relevant disciplines.
After 2028 (or 2030 if the bill is passed), EVs and other new energy vehicles will subjected to tariff rates ranging from 3-30%. Electric motorcycles and passenger cars will receive the brunt of that with a 30% rate.
Through EVIDA, the government has rolled out several incentives for Filipino drivers to make the switch to EVs and hybrids. With the market and the culture steadily growing, the government looks to sustain and propel the EV movement forward. The Electric Vehicle Association of the Philippines even predicts that the number of registered EVs could grow to as much as 6.6-million in the next five or so years. According to the Land Transporation Office, the number of registered EVs is currently at 17,519.
Do you think longer tariff and tax cuts are enough to grow the local EV market? Let us know.
