DTI weighs incentives mix for EVs
The government will have to carefully weigh any extension of incentives for imported electric vehicles (EVs) against its parallel push to build a domestic EV manufacturing industry, according to trade officials.
Among the biggest incentives for imported EVs is the zero-tariff policy, which is set to run until 2028. But the Electric Vehicle Association of the Philippines has pushed for its extension until 2040 to sustain the momentum in EV adoption amid elevated oil prices.
However, Trade Undersecretary Ceferino Rodolfo said such a proposal would have to undergo careful review, with one key consideration being how an extension would jibe with the government’s efforts to entice automakers to manufacture EVs locally.
At the center of that manufacturing push is the P60-billion Electric Vehicle Incentive Strategy (Evis), the government’s biggest automotive incentive program to date and one designed specifically to jump-start local EV production.
“We’ll evaluate as we move closer to 2028 if we have achieved the objective of making it zero in the first place, meaning to build up sufficient demand and to put up the infrastructure,” Rodolfo told reporters when asked about the proposed extension of the zero-tariff policy.
“Second, [we’ll evaluate it] alongside the objective of the Evis, which is to encourage the assembly of electric vehicles in the Philippines,” he added.
Socioeconomic Planning Secretary Arsenio Balisacan backed the cautious approach, saying any extension of the zero-tariff policy should also be studied against its potential implications for other industries.
“We have to look at it as an ecosystem,” Balisacan said. “The zero tariff is supposed to be temporary, just to speed up the adoption of EVs because that will also help address all the problems we have with energy and power.”
“What we want to make sure is that, even as we are promoting EVs, other forms of transportation are given the same level playing field,” he added.
Balisacan said the government could also consider imposing a lower tariff instead of maintaining the zero-duty treatment. Before the policy took effect, the Philippines imposed tariffs of up to 30 percent on imported EVs.
While the government is taking a wait-and-see approach on extending incentives for imported EVs, preparations are moving ahead for the rollout of Evis.
Rodolfo, who also serves as managing head of the Board of Investments (BOI), said he had already signed the draft implementing rules and regulations for Evis, which have been forwarded to the interagency committee for comments and approval.
BOI Executive Director Ma. Corazon Halili-Dichosa said the implementing rules could be released within September, paving the way for applications to open by October.
Evis has four available slots, with each participating automaker allowed to enroll up to two EV models. Up to P15 billion in fiscal support is available for each participating manufacturer.
Dichosa said the government aims to finalize the roster of Evis participants before the end of 2026, allowing successful applicants to begin constructing facilities, importing equipment and materials, and conducting trial production by 2027.
The ultimate goal is for participating manufacturers to begin commercial EV production in the Philippines by 2028, before the end of the Marcos administration.
