The Electric Vehicle Association of the Philippines (EVAP) is urging the Senate to approve Senate bill 2856, authored by Senator Ralph Recto, which provides incentives to importers and manufacturers of electric vehicles.
Now pending at the Senate, SB 2856 is the counterpart measure of House bill 5460 earlier approved by the House of Representatives.
“We hope the Senate approves the pending bill so as to help re-energize the domestic auto parts making industry where member companies are operating at below 50 percent of their rated plant capacities and on which some 50,000 employees are dependent upon,” EVAP president Rommel Juan said Tuesday.
Once enacted into law, these bills could level the playing field needed by the local electric vehicle industry to compete with counterparts in peer economies and probably make the Philippines the manufacturing hub for both electronic vehicles and parts in the region, said Juan.
HB 5460 and SB 2856 cover tax incentives for manufacturers and assemblers.
“We are very firm in our full support for the local manufacture of EV parts and components and the local assembly of all electric vehicles,” said Juan.
In a position paper sent to Tariff Commission chairman Atty. Edgardo Abon, EVAP said an electric car that has been imported as a completely built unit should be levied a 30 percent duty.
The association also asked the commission to compel manufacturers and assemblers to use local parts and components, while parts, components and capital equipment that are not available locally should be imported at zero percent duty.
The industry initiatives could result in much-needed relief to manufacturers, assemblers, importers and suppliers, according to EVAP.
“This could even result in a reduction of some 30 percent in the selling price for EVs. This is the reason we hope these initiatives are acted upon with dispatch,” said Juan.