InterAksyon.com means BUSINESS
MANILA - The Electric Vehicle Association of the Philippines is pushing legislation that would grant tax incentives to domestic electric vehicle manufacturers.
EVAP also asked the government to impose higher tariffs on imported units and parts to bolster local production.
"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 electric vehicle parts and vehicles in the region," Rommel Juan, EVAP president, said in a statement.
HB 5460 aims to put in place the following incentives:
- For electric vehicle manufacturers and assemblers, exemption from payment of excise tax and duties for nine years; value added tax 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; and
- For electric vehicle importers, exemption from payment of excise taxes and duties for four years.
Juan said these tax incentives could slash selling prices of electric vehicles by about a third.
SB 2856 reflects the same perks for electric vehicle manufacturing and importation. "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 percent of their rated plant capacities and on which some 50,000 employees are dependent upon," Juan said.
Both bills offer perks to importers, but Juan said domestic manufacturers must receive greater support.
"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," Juan said.
In a position paper submitted to the Tariff Commission, EVAP pushed regulations on importation of completely built up electric vehicles as well as completely knocked down parts. EVAP as well recommended that:
- If an electric vehicle is imported as a CBU, the duty must be at a high 30 percent;
- Parts and components available locally must be used;
- Parts and components not available locally and have to be imported must be at zero percent duty;
- Capital equipment and spare parts for electric vehicle manufacturing and assembly and is to be imported must be at zero percent duty; and
- Imported raw materials needed must also be at zero percent duty.
EVAP groups electric vehicle manufacturers, assemblers, importers, suppliers, dealers, distributors, enthusiasts and members of the academe.
Electric vehicles are said to be more eco-friendly than those powered by fossil fuel, hence are being touted as alternative means of transportation to reduce pollution.
InterAksyon.com means BUSINESS
BUSINESS NEWS
