By Tracy Cabrera
MALACAÑAN, Manila — President Ferdinand ‘Bongbong’ Marcos Jr. (PBBM) has signed an executive order establishing a new incentive program worth up to ₱60 billion to step up efforts that would position the Philippines as a regional hub for electric vehicle (EV) manufacturing.
In an announcelent, Department of Finance (DoF) secretary and Fiscal Incentives Review Board (FIRB) chair Frederick Go welcomed Executive Order No. 121, saying the move as timely critical as the country faces and energy crisis triggered by skyrocketing prices of petroleum products.
Secretary Go cited that through the President’s executive order, an Electric Vehicle Incentive Strategy (EVIS) program will be established as a major milestone in building a globally competitive EV manufacturing industry in the Philippines.
Approved by the FIRB as early as May, the EVIS Program aims to promote performance-based fiscal incentives designed to attract large-scale investments in EV production while strengthening the Philippines’ role in the global automotive value chain.
“The program provides up to ₱60 billion in fiscal support for qualified manufacturers of Hybrid Electric Vehicles (HEVs), Battery Electric Vehicles (BEVs) and accredited EV parts makers. The government plans to enroll up to four participating manufacturers, with incentives capped at ₱15 billion for each EV model,” Go disclosed.
Accordingly, the initiative is expected to reduce the country’s dependence on imported fossil fuels, support the shift to cleaner energy, improve long-term energy security and create quality manufacturing jobs.
“The EV Incentive Strategy sends a clear signal that the Philippines is ready to compete for the next generation of automotive investments,” the finance chief pointed out.
“Through a targeted and performance-based incentive system, we are encouraging manufacturers to build, innovate, and grow in the Philippines while creating quality jobs for Filipinos,” he added.
The EVIS Program was jointly developed by the finance department with the FIRB, Department of Trade and Industry (DTI), Board of Investments (BoI) and other government agencies to ensure that incentives are linked to measurable economic outcomes.
Participating manufacturers may register up to two EV models and qualify for either Fixed Investment Support or Production Volume Incentives, subject to investment and performance requirements.
Companies must introduce locally manufactured EVs to either the domestic or export market within three years of registration.
In ending, Go credited President Marcos Jr. for pushing the initiative forward: “We thank President Ferdinand R. Marcos Jr. for his steadfast leadership and vision in making this initiative possible.”
ia/xf
