How EVIDA is shaping the future of EV registration in the Philippines

Electric vehicles were introduced as an alternative fuel-powered vehicle. They are also a perfect solution to the ever-increasing fuel prices, as they are powered by large batteries that run the motors. To get them in action, one simply needs to connect the EV to an electric source, like charging a smartphone or laptop.

However, with the introduction of electric vehicles, there was a need for a law that would act as a regulatory framework and create a comprehensive roadmap for EV operation. In response, the government introduced the Republic Act No. 11697, commonly known as the Electric Vehicle Industry Development Act (EVIDA Law).

Before getting into the details of the EVIDA Law and seeing how it is shaping the future of EV registration in the country, it is important to understand EVs a little better.

What is an EV?

As discussed, EVs are designed to run on electricity rather than gasoline. They feature large batteries that need to be recharged via an electric source.

Advantages and disadvantages of using EVs

Purchasing an EV isn’t all bed of roses, it comes with its own set of challenges, however, given the merits, we think the cons are manageable.

Advantages	Disadvantages
Energy-efficient: EVs feature smart systems and regenerative braking.	Expensive: EVs in the Philippines carry a hefty price tag.
At-home fuel station: Rechargeable from home, no worry about exorbitant gas prices.	Rare availability of charging stations: EVs are relatively new, meaning charging stations are scarce.
Easy maintenance: No need for oil changes, or spark plug changes.	Shorter driving range: Entry-level EVs have shorter ranges.
Environment-friendly: No direct emission, as they are powered by electricity.	Charging takes time: EVs approximately takes 5 hours to a day to charge fully.

Electric cars in the Philippines

Electric cars are slowly making their way into the Philippine's auto arena. Though the availability is rare, things are starting to look up for the industry. For one, President Ferdinand Marcos Jr. even approved a temporary traffic reduction on EVs and spare tarts to 0%, all to encourage prospective buyers to consider EVs.

Further, the government also worked out the EV Industry Development Act (EVIDA Law) and the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI), to boost the development of EVs in the Philippines. In this article, we’ll be discussing the two in detail as they both complement each other.

Understanding the EVIDA Law

The Electric Vehicle Industry Development Act (EVIDA), or Republic Act No. 11697, became law in April 2022. It aims to make transportation in the Philippines cleaner and more sustainable by encouraging the use of electric vehicles. The law helps reduce dependence on fossil fuels, promotes energy independence, and supports environmental protection through a clear set of rules and incentives for adopting EVs.

Key objectives of EVIDA

EVIDA aims to do the following -

• Promote energy independence: By reducing the country's reliance on imported fuel, EVIDA enhances energy independence.
• Encourages EV development: The law creates a supportive environment for manufacturing, importing, and utilizing electric vehicles.
• Foster innovation: The act promotes sustainable and clean technologies, aligning with global environmental goals.
• Enhances public well-being: By reducing emissions, EVIDA contributes to improved public health.
• Boost local industry: Supporting EV manufacturing generates employment and nurtures globally competitive industries.

Comprehensive Roadmap for Electric Vehicle Industry (CREVI)

The EVIDA is complemented very well by the CREVI as it outlines strategies for EV adaptation and growth. It supports the EV setup through the following means -

• Infrastructure development: CREVI encourages the development of EV charging stations and designated parking slots in the country.
• Manufacturing support: The law establishes standards for EV production, batteries, and recycling facilities.
• Research & innovation: It encourages R&D for advanced EV technologies.
• Human resource development: It encourages training skilled workers to support the EV industry.

Simplified EV Registration

One of the biggest contributions of EVIDA is prioritising and streamlining the EV registration process. How? Well, under its framework -

• EVs are assigned special plates and are exempt from the Unified Vehicular Volume Reduction Program (UVVRP), commonly known as the number-coding scheme.
• Procedures for registering EVs, including e-bikes and e-scooters, have been simplified. Owners must provide essential documents such as vehicle specifications and certificates of roadworthiness to comply with Land Transportation Office (LTO) requirements.

EVIDA Law incentives

The EVIDA law includes several fiscal and non-fiscal incentives. Let us discuss each in detail -

Non-Fiscal incentives Priority registration Priority renewal of registration Insurance of a special type of vehicle plate Exemption from the following - Mandatory unified vehicular volume reduction program, number-coding scheme, and other similar schemes implemented by government agencies Expeditious processing for the following - franchise application and or renewal of application to operate PUV for operators utilizing exclusively EVs Expeditions processing by the Bureau of Customs of the importations of EV importers and manufactures

Fiscal incentives Imported completely built charging stations are exempt from payment of duties for 8 years 30% and 15% discount is entitled on the utilization of battery EVs and hybrid EVs Imported completely built EVs are entitled to incentives Manufacture and assembly of EVs, batteries, charging stations, and parts shall undergo an evaluation process to determine possible entitlement to incentives for the length of time and inclusion in the strategic investment priority plan

Other benefits of EVIDA Law

There seems to be no dearth of EV ownership benefits under the EVIDA Law. The list includes -

• 100% excise tax exemption for fully battery-operated vehicles
• 50% excise tax exemption for hybrid vehicles operated both by fuel and battery
• More job opportunities for local skilled workers
• Less reliance on imported fuel
• Designated charging stations for EVs in gasoline stations and parking facilities in establishments

Bottom line

The EVIDA law represents a significant step towards a sustainable and innovative transportation future in the Philippines. It addresses energy, environmental, and industrial challenges and lays the foundation for widespread EV adoption.

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