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| A law is expected to encourage electronic vehicle\use in the Philippines and may replace gas-guzzling ones like in the photo. Photo by Scruffed. |
ELECTRIC
VEHICLE ASSOCIATION OF THE PHILIPPINES (EVAP) SUPPORTS LEGISLATIVE INITIATIVES
ON ELECTRIC VEHICLES
Press
Release
August 7,
2012
The Electric
Vehicle Association of the Philippines (EVAP) today threw its full support to
legislative bills providing incentives to both electric vehicle
manufacturers / assemblers and importers. EVAP is the organization of EV
manufacturers, assemblers, importers, suppliers, dealers, distributors,
enthusiasts and even the academe.
EVAP
President Rommel Juan said that the organization fully supports legislative
initiatives both in Congress and the Senate. “We believe that House Bill No.
5460 which has been approved and Senate Bill No. 2856 which is still pending
will make us competitive in the region and probably make us the manufacturing
hub for both EV parts and vehicles in the region”.
House Bill
No. 5460 provides various incentives such as exemption for EV manufacturers and
assemblers from payment of excise tax and duties for nine years, VAT exemption
for the importation of raw materials, spare parts, components and capital
equipment for nine years and zero percent VAT rate for the sale of raw
materials, spare parts, components and capital equipment also for nine years.
For EV importers, the Bill provides for exemption from payment of excise taxes
and duties for four years.
These same
benefits are contained in the counterpart Senate Bill No. 2856 authored by Sen.
Ralph Recto. Juan hopes that the Senate would act on this pending bill in the
soonest possible time. “We hope the Senate approves the pending bill so as to
help re-energize the domestic auto parts making industry where member companies
are operating at below 50% of their rated plant capacities and on which some
50,000 employees are dependent upon”, he adds.
Juan
explains that EVAP has also made its position very clear to the Tariff
Commission with respect to duties to be imposed on electric vehicles imported
either as completely-built up (CBU) or by parts (completely knocked down). “We
are very firm in our full support for the local manufacture of EV parts and
components and the local assembly of all electric vehicles”, he adds.
In a
position paper sent to Tariff Commission chairman Atty. Edgardo Abon, EVAP
bared its position as:
1. If an EV is imported as a
completely-built up (CBU) unit, the duty must be at a high 30%
2. Parts and components available locally
must be used3. Parts and components not available locally and have to be imported must be at zero percent duty
4. Capital equipment and spare parts for EV manufacturing and assembly and is to be imported must be at zero percent duty also
5. Imported raw materials needed must also be at zero percent duty.
Juan
explains that if all of these EVAP initiatives are successful, it will result
in providing the much-needed relief to EV manufacturers, assemblers, importers
and suppliers. “This could even result in a reduction of some 30% in the
selling price for EVs. This is the reason we hope these initiatives are acted
upon with dispatch,” he concludes.