The law which became effective in April 2022 is expected to encourage growth for this industry, helping the country move towards a greener mobility with a fossil fuel-free environment. It is also designed in hopes of attracting high-tech investments to stay and support the country as it copes with the ongoing global shift to EVs. This article provides an overview of the EVIDA Law, along with the purpose, benefits, and incentives that comes with development, manufacture, and overall operations of EVs.
What are Electric Vehicles (EVs)
Electric vehicles, or EVs, are vehicles designed in such a way that they don't use gasoline. Instead of a gasoline tank, EVs come with large batteries used to power their motors. EVs run on batteries, so in order to use them, one simply needs to connect them to an electrical source in order to refuel or recharge, exactly like charging your smartphone or laptop from an outlet.
Advantages and Disadvantages of using EVs
Using EVs come with certain benefits, including the following:
•They're energy-efficient. Compared to conventional cars, EVs are designed with a smart system and regenerative braking to make it more energy-efficient.
• It is rechargeable from home so your home can serve as your own fuel station. Even if your EV rums out of juice, you can simply charge at home, so you don't have to worry about exorbitant gas prices ever again.
• They're easier to maintain. Compared to gas-powered cars, electric cars are so much easier to maintain. There's no more need to deal with oil changes, spark plug changes, and the upkeep of combustion-related parts.
• They're environment-friendly Cars that rely on a combustion system produce emissions that are harmful to the environment. Purely electric cars, on the other hand, don't have any direct emissions since they're powered by electricity. EVs also run quietly, so they don't contribute to noise pollution.
Unfortunately, there's always two sides to a coin. Hence, the drawbacks of using EVs in the Philippines are listed as follows:
• They're expensive Compared with gas-powered vehicles, electric vehicles in the Philippines come with a hefty price tag. You might need to shell out twice as much when buying EVs, compared to when you are purchasing conventional cars.
• Commercial recharging stations are rare Though EVs can be charged at home, running out of juice outside can be a problem. After all, EVs are new in the Philippines, which means charging stations are scarce. That said, you will have to be extra careful about planning your trips in advance.
• They have shorter driving ranges Entry-level EVs have short driving ranges in between charges, so you'd want to use your EVs only for short trips. can cover less distance between charges.
• Charging takes time Some electric cars in the Philippines takes approximately 5 hours to a day to reach a full charge, which could be a problem if you have last-minute travel plans. Some models may have a fast charging feature, but recharging them still takes about 30 minutes to 2 hours.
Are there electric cars in the Philippines Yes. But the number of models available in the country is limited. Despite this, things are starting to look up for the EV industry. For one, President Ferdinand Marcos Jr. has approved the temporary reduction of tariffs on EVs and spare parts to 0%, in an effort to encourage motorists to consider EVs.
The government also created the EV Industry Development Act (EVIDA Law) and the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI), a roadmap to boost the development, commercialization and utilization of electric vehicles in the Philippines.
What is the EVIDA Law
The EVIDA Law or Republic Act (RA) 11697 is the Electric Vehicle Industry Development Act. It passed into law on April 15, 2022, and is the Philippine government's new movement towards a greener mobility and fossil fuel-free environment.
The EVIDA Law outlines the regulatory framework and creates a comprehensive roadmap for the operation of electric vehicles (EVS) in the Philippines. It governs everything about EVs, including but not limited to "the manufacture, assembly, importation, construction, installation, maintenance, trade and utilization, research and development, and regulation of electric vehicles" along with other benefits which will be detailed in the next section.
EVIDA Law Mandates
The EVIDA Law was primarily created to provide a regulatory framework and a roadmap for E-Vehicle's operation in the Philippines. The law ensures that the following purposes are served:
• Ensure the country's energy security and independence by reducing reliance on imported fuel for the transportation sector;
• Provide an enabling environment for the development of electric vehicles including options for micro mobility as an attractive and feasible mode of transportation to reduce dependence on fossil fuels;
• Promote and support innovation in clean, sustainable, and efficient energy to accelerate social progress and human development by encouraging public and private use of low emission and other alternative energy technologies; Protect the health and well-being of the people from the hazards of pollution and the greenhouse effect;
• Safeguard and improve the integrity, reliability, and stability of the country's electric power grid by optimizing the location of energy sources relative to demand;
• Promote inclusive and sustainable industrialization while recognizing the role of the private sector in order to support the transition to new technologies, generate jobs, spur small and medium enterprise growth, attract investments, grow globally competitive and innovative industries, and upgrade the country's participation in regional and global value chains, consistent with the Philippine Development Plan and the country's international obligations under the United Nations Sustainable Development Agenda;
•Generate employment opportunities for the local skilled workforce to sustain their livelihood;
•Protect and safeguard the country's cultural heritage through the Philippine transportation system, which remain an underlying factor in progress and innovation; and
•Recognize the role of local government units (LGUS) as competent partners of the national government in the smooth transition to this innovation by providing them capacity-building support.
What is CREVI
As part of the goals of the EVIDA Law, the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI) was created. Under the provisions of the CREVI, a national development roadmap, the EV industry gets an annual plan that will help accelerate and boost the development, commercialization and utilization of electric vehicles in the Philippines via the following four (4) components:
• EVs and charging stations component which includes:
• Development of standards and specification of EVs and charging stations,
• Industry promotion of EVs,
• Designation of dedicated parking slots for EVs, and
•Construction or installation of charging stations in dedicated parking slots and dedicated spaces,
• Manufacturing component which includes:
• Promotion and development of the local manufacturing of the EV industry, and
• Manufacturing standards for EVs, batteries and facilities including recycling facilities, parts and components, and charging stations and related equipment,
•Research and development component, and
• Human resource development component which includes skills and capacity-building of needed personnel
EVIDA Law Incentives
The EVIDA Law also included the following benefits:
Non-Fiscal Incentives
•Priority registration
• Priority renewal of registration
•Issuance of a special type of vehicle plate.
•Exemption from the mandatory unified vehicular volume reduction program, number-coding scheme, or other similar schemes implemented by different government agencies.
•Expeditious processing of applications for the franchise to operate public utility vehicles for operators that are exclusively utilizing EVs.
• Expeditious processing of renewals for the franchise to operate public utility vehicles for operators that are exclusively utilizing EVs.
• Expeditious processing by the Bureau of Customs of the importations of EV manufacturers and importers.
• Permit for foreign nationals to be employed under technology transfer agreements, subject to the guidelines of the relevant government agencies.
Fiscal Incentives
• The manufacture and assembly of EVs, charging stations, batteries and parts and components thereof shall undergo an evaluation process to determine the following:
• inclusion in the strategic investment priority plan and
• possible entitlement to the incentives for the length of time
• The importation of completely built EVs shall generally be entitled to incentives under the TRAIN Act (R.A. No. 10963).
• The importation of completely built charging stations shall be exempt from the payment of duties for eight years from the effectivity of the EVIDA Law
• The utilization of battery EVs and hybrid-EVs shall be entitled to a discount of 30% and 15%, respectively, from the payment of the motor vehicle user's charge, vehicle registration and inspection fee for eight years from the effectivity of EVIDA.
Other Benefits
Other benefits of EV ownership resulting from the enactment of the EVIDA Law includes:
• Long-term 100 percent excise tax exemptions for full battery operated vehicles
• Long-term 50 percent excise tax exemptions for hybrid vehicles that operate both by fuel and battery
• More job opportunities for local skilled workers
• Lesser reliance on imported fuel
• Designated electric vehicle charging stations in gasoline stations
• Priority designated parking from various establishments
• Savings from fuel pump
• Greener environment and an economical upgrade for vehicles
Video: DOTr and LTO Explains Using Electric Vehicles in the Philippines
Here's a video of the Department of Transportation (DOTr) and Land Transportation Office (LTO) explaining the benefits and usage of electric vehicles in the Philippines. The video showcases different types of electric vehicles, such as e-trikes, e-jeeps, and e-buses, that are being used in the country for public transportation. It also suggests tips for Filipinos who wish to purchase their own electric vehicles and how to properly maintain them.
