Co-author: Raffy S. Cedro l July 25, 2025 l Manila Times
Amid the looming repair of major portions of EDSA and its disruption of traffic comes an influx of electric vehicles (EVs) in the metro.
EVs have the advantage of exemption from the number coding scheme, the road space rationing program first implemented in 1995 to reduce traffic congestion in the National Capital Region.
But is owning an EV a wise investment for Filipinos? Yes, it is, based on Republic Act 11697 or the Electric Vehicle Industry Development Act (Evida).
The law seeks to promote a greener Philippines by reducing vehicles’ reliance on imported fuel. It also offers incentives by way of fiscal and non-fiscal benefits to players in the EV industry — importers, manufacturers, and EV users themselves.
The non-fiscal benefits consist of EV owners given priority in vehicle registration and licensing processes, including the issuance of special license plates.
This covers applications at the Land Transportation Franchising and Regulatory Board (LTFRB). Likewise, commercial establishments are encouraged to give EVs priority parking spaces, designated charging stations in different locations, including gasoline stations.
Fiscal benefits give owners of both hybrid and full EVs discounts on Motor Vehicle User’s Charge (MVUC), a fee for using public roads. EV owners are also given discounted registration and inspection fees for eight years from 2022 to 2030.
In addition, the Tax Reform for Acceleration and Inclusion (Train) Act, which complements Evida, provides excise tax exemptions for full EVs and discounts for hybrids.
Another benefit is lower import duties on EVs and their parts, making their maintenance more affordable.
Income tax holidays
EV manufacturers and importers of EVs and related components may be eligible for Income Tax Holidays (ITH) for a specified period. In fact, eligible companies may benefit from a lower corporate income tax rate or enhanced deductions after the ITH period.
Moreover, a provision in Evida, the Comprehensive Roadmap for Electric Vehicle Industry (Crevi), calls for a government-led national development plan to accelerate the development, commercialization, and utilization of EVs in the country, comprised of the following four components:
– Standards and specification of EVs and charging stations, industry promotion, designation of dedicated parking slots, and construction or installation of charging stations in dedicated parking slots and dedicated spaces;
– Promotion and development of 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;
– Human resources which includes skills and capacity-building of needed personnel.
Crevi shows that the government has an actual plan in place, and that it has every intention of keeping the implementation of the law dynamic in nature.
Evida seeks to make EVs more accessible and affordable, enabling a smooth transition to its wider use.
These are also expected to increase revenue streams for the country, including the creation of more jobs, and, most importantly, to build a greener future for the Philippines.
***The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX. For comments, email msgorriceta@gorricetalaw.com. Photo is from Pinterest.