The electric vehicle industry expects to benefit from its exemption from the higher excise taxes to be slapped on automobiles, the group of e-vehicle makers said.
In a letter submitted to the Senate committee, the Electric Vehicle Association of the Philippines (EVAP) expressed its gratitude to both Houses for proposing the exemption from excise tax of both electric and hybrid vehicles.
EVAP president Rommel Juan said the exemption serves as some form of incentive for the local electric and hybrid vehicle industry which many other countries such as the US, Norway, China, Thailand and Malaysia have been enjoying.
“While Congress has already approved House Bill 5636, the Senate is now deliberating on Senate Bill 1408. Both bills cover the comprehensive tax reform package and include provisions for excise tax for automobiles. Both bills also exempt electric and hybrid vehicles from excise tax,” EVAP said.
In the proposed law, EVAP said hybrid vehicles are also exempted as long as “its drive system consists of an efficient combustion engine and a powerful electric motor which can run at least 30 kms under one full charge.”
“The Philippine automotive industry is enjoying an unprecedented boom and we want more and more EVs and hybrids to take a slice of the automotive pie,” EVAP vice president Edmund Araga said.(R. Mercurio, PS)