Salceda proposes EVIDA amendments to boost PH’s electric vehicle industry

IN a groundbreaking move aimed at enhancing the electric vehicle (EV) industry, Albay Second District Rep. Joey Sarte Salceda has introduced House Bill No. 9573.

The bill seeks to amend Republic Act No. 11697, known as the “Electric Vehicle Industry Development Act” (EVIDA), to revamp the tax and duty treatment of electric vehicles and address critical issues facing the country.

The primary goal of the bill is to align the Philippines with its commitments to the international community under the Paris Agreement and reduce the nation’s reliance on fossil fuels.

The rising net petroleum import bill, soaring from USD 11.57 billion in 2021 to USD 19.02 billion in 2022, underscores the urgency of transitioning to sustainable alternatives.

Salceda argues that the electric vehicle sector is a key player in achieving this transition.

“While the EVIDA has successfully propelled a six-fold increase in electric car sales in 2023 compared to 2022, limitations in the law have excluded two-wheeled electric vehicles from crucial fiscal incentives,” Salceda said.

The proposed amendments include a redefinition of electric vehicles to explicitly include two-wheeled vehicles in the Act’s scope.

The lawmaker from Bicol emphasized that 60% of electric vehicles in the country fall into the two-wheeled category, making their exclusion from tax incentives inequitable. Additionally, two-wheeled electric vehicles are highlighted for their affordability and potential to address congestion issues.

Key amendments outlined in the bill are:

1. Redefinition of Electric Vehicles: The bill modifies Section 4 of Chapter I of Republic Act No. 11697 to include two-wheeled vehicles in the definition of electric vehicles.

2. Fiscal Incentives: Section 24 of Chapter IV is amended to grant fiscal incentives, including a zero-percent duty treatment on the importation of completely built electric vehicles until 2029. Charging stations and related components also receive exemptions from duties for eight years.

3. Implementation and Enforcement: The bill mandates relevant departments and agencies to formulate rules and regulations for effective implementation within ninety days of the Act’s effectiveness.

4. Repeal of Inconsistent Laws: Any laws, decrees, executive orders, rules, or regulations inconsistent with the provisions of this Act are repealed or modified accordingly.

5. Constitutional Validity: A clause ensures that if any section or provision of the Act is held unconstitutional or invalid, other sections or provisions will remain unaffected.

6. Effectivity: The Act is set to take effect fifteen days after its publication in the Official Gazette or at least two national newspapers of general circulation, whichever comes earlier.

This proposed legislation signifies a crucial step towards fostering a more sustainable and inclusive electric vehicle industry in the Philippines, aligning with global efforts to combat climate change and reduce dependence on fossil fuels.