On 15 April 2022, Republic Act No. 11697, or the "Electric Vehicle Industry Development Act" ("EVIDA"), lapsed into law. Against the backdrop of rising fuel prices, the EVIDA promises energy security and independence by reducing reliance on imported fuel for the transportation sector and an enabling environment for the development of electric vehicles.
The EVIDA mandates the creation of a Comprehensive Roadmap for the Electric Vehicle ("EV") Industry ("CREVI"), which refers to a national development plan for the EV industry with an annual work plan to accelerate the development, commercialisation, and utilisation of EVs. The CREVI has the following four components: (i) EVs and charging stations; (ii) manufacturing; (iii) research and development; and (iv) human resource development.
Further, the EVIDA seeks to generate demand and develop the EV industry by requiring at least 5% of the fleet of industrial and commercial companies, public transport operators, local government units, national government agencies, and government-owned and controlled corporations to be EVs. The EVIDA seeks to eventually convert the entire fleet of the foregoing entities to be EVs through a gradual increase of the percentage. The EVIDA also requires the allotting of parking slots for EVs in both private and public buildings and the construction or installation of charging stations in select gasoline stations.
The EVIDA provides for fiscal incentives, such as:
- the possible inclusion of the manufacture and assembly of EVs, charging stations, batteries, and other parts and components, and the establishment and operations of charging stations and other related support infrastructure in the strategic investment priority plan (IPP) of the Bureau of Investments (BOI);
- the exemption of importers for importation of completely built units of EVs from the payment of duties for eight years from the effectivity of EVIDA; and
- the entitlement to a discount from the payment of motor vehicle user’s charge imposed under Republic Act No. 8794, otherwise known as "Motor Vehicle User's Charge Act", and vehicle registration and inspection fees.
There are likewise non-fiscal incentives, such as priority registration and expeditious processing in certain government agencies.
