BOI plans to include e-vehicle industry in 2014 IPP
MANILA, Philippines—The Board of Investments is mulling over the proposal to include the electric vehicle industry in the 2014 Investment Priorities Plan (IPP) as the sector continues to seek more technological infrastructure and government support.
“If investor incentive is needed [for the electric vehicle industry], then we will see if this can be accommodated in the Investments Priority Program for 2014,” BOI Governor Lucita Reyes said in a statement Tuesday.
“We are now consulting the different industries as we aim for a sharper focus on preferred economic activities, or activities that will fill the supply chain gaps. The incentives may vary per sector or per project. The validity is going to be three years. However, right now, all fiscal incentives are being reviewed and rationalized to ensure only those that are relevant to the current needs will be retained,” Reyes explained.
During the recently concluded 3rd Philippine Electric Vehicle Summit, stakeholders and government officials admit that the local electric vehicle (EV) sector needs to hurdle major roadblocks before it can join the mainstream of the Philippine automotive industry.
One of the biggest roadblocks is technology.
Science and technology initiatives are now “sadly lacking in infrastructure, such as advanced materials testing laboratories, auto parts and components testing facilities and vehicle research and testing laboratories,” according to Terra Motors president Toru Tokushige.
A critical factor in EV success is the battery, specifically the need for new technologies to reduce costs while enhancing battery life, performance and the way it is charged, Tokushige pointed out.
Ferdinand Raquelsantos, president of both the Motor Vehicle Parts Manufacturers Association of the Philippines and EV assembler Philippine Utility Vehicle Inc., meanwhile, outlined the different fiscal incentives the industry would like to have, such as income tax holidays plus exemption from the payment of excise tax, duties and VAT.
“It would also help if the EV industry is given non-fiscal incentives, such as priority in vehicle registration and franchise registration, exemption from the number-coding scheme and free parking in new establishments,” Raquelsantos said.
He cited the gains to be had from a strong EV sector such as carbon credits due to emission reduction, dollar savings from oil imports, and savings from pollution-related health expenses.
The Electric Vehicle Association of the Philippines currently has a goal of putting 1 million electric vehicles on Philippine roads by 2020.—Amy R. Remo
