The country’s electric vehicle (EV) industry is rallying behind a proposal to extend incentives for EV buyers and investors, arguing that sustained government support is critical to accelerating the shift away from fossil fuels and building a viable domestic electric mobility ecosystem.
The Electric Vehicle Association of the Philippines (EVAP) said Senate President Sherwin Gatchalian’s proposal to amend the Electric Vehicle Industry Development Act (EVIDA) comes at a crucial time, with key tax and tariff incentives scheduled to expire next year.
“That’s a welcome move to entice more vehicle owners to shift to EVs, which would lessen the country’s dependence on oil,” EVAP Chairman Ferdinand Raquelsantos said.
Gatchalian’s Senate Bill No. 2270 seeks to extend fiscal and non-fiscal incentives under Republic Act No. 11697 from eight years to 12 years. The measure also proposes retaining zero-percent import duties on electric vehicles, charging equipment and related infrastructure, while introducing additional benefits such as discounted or free parking, toll-free access to designated EV expressway lanes, a “Buy Now, Register Later” program, and a larger allocation of dedicated EV parking spaces.
The proposal effectively prevents a policy cliff that could slow investment decisions just as the local EV market is beginning to gain traction.
EVAP Vice President Carla Buencamino said the association fully supports efforts to make electric mobility more affordable and practical.
“These proposed initiatives will go a long way in accelerating the shift and helping the industry meet government-mandated targets. EVAP stands ready to work with the government in whatever capacity it may be called upon throughout the process,” she said.
Raquelsantos recalled that lawmakers intentionally limited the original incentives to give local manufacturers time to identify viable market opportunities.
Four years after EVIDA took effect, he said the industry’s biggest opportunity lies not in private passenger cars but in commercial fleets serving public transportation and logistics. Electrifying these fleets could deliver greater fuel savings, lower operating costs and faster emissions reductions than focusing solely on private vehicles, suggesting that extending incentives could not only sustain EV adoption but also steer investments toward segments with the greatest economic and environmental impact.
