The Department of Energy (DOE) on Friday welcomed the approval by the National Economic and Development Authority (NEDA) Board of the expansion of tax breaks for two and three-wheeled battery electric vehicles (BEVs), hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs) until 2028.
The NEDA Board, chaired by President Ferdinand Marcos Jr., approved on May 15, 2024 the expansion of the coverage of Executive Order (EO) No. 12, which originally decreased tariffs on electric vehicles (EVS) until 2028.
The program now includes e-motorcycles, e-bicycles, nickel metal hydride accumulator batteries, e-tricycles, hybrid EVs and plug-on HEV jeepneys or buses.
“By broadening the scope to include a wider range of electric and hybrid vehicles, we are not only simplifying environmentally friendly choices for consumers but also fostering innovation and growth within the country’s electric vehicle industry program, subject to an annual review,” Energy Secretary Raphael Lotilla said.
The expanded tax incentive program aims to enhance the accessibility and affordability of electric and hybrid vehicles for all consumers.
It also encourages shifting from fossil fuel dependency and contributing to reducing greenhouse gas emissions.
President Marcos Jr. signed EO 12 in February 2023, temporarily eliminating tariffs for EVs and their components for five years but excludes two and three-wheeled EVs, HEVs, and PHEVs.
Lotilla said the tax incentives expansion aligns with a comprehensive strategy to facilitate the transition of land transport vehicles to EV under the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI).
It will also stimulate demand for electric and hybrid vehicles, encourage domestic manufacturing and assembly, and generate new jobs within the green technology sector, the energy chief said.
There were 7,515 EVs among the 14,269,414 registered land transport vehicles in the country as of 2023, according to data from the Land Transportation Office.
The CREVI aims to reach 311,700 EVs by 2028 under the business-as-usual scenario, along with establishing 7,300 EV charging stations in the short term from 2023 to 2028.
There were at least 563 registered EVCS charging points nationwide recognized by the DOE as of April 2024.
