58101! Oftier of tis TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 25 AUG -5 P2:07 SENATE RECEIVED BI S. No. _ Introduced by Senator Jinggoy Ejercito Estrada AN ACT PROVIDING FOR THE TAX AND DUTY TREATMENT OF ELECTRIC VEHICLES, AMENDING OR THE PURPOSE REPUBLIC ACT NO. 11697, OTHERWISE KNOWN AS THE "ELECTRIC VEHICLE INDUSTRY DEVELOPMENT ACT" EXPLANATORY NOTE Republic Act No. 11697 or the Electric Vehicle Industry Development Act was passed in 2022 to provide an enabling environment for the development of electric vehicles (EVs), reduce reliance on fossil fuels, and help decarbonize the transportation sector by reducing greenhouse gas emissions. An EV is driven by an electric motor that uses stored energy in its rechargeable batteries vis-à-vis a vehicle with a traditional internal combustion engine, which generates power by burning a mixture of gasoline and gases. Over the years, the Philippines has been experiencing a growing adoption of electric vehicles (EVs) in the everyday lives of Filipinos, primarily driven by tax perks and a shift toward a more sustainable transportation option. EV users-compared with conventional gasoline- or diesel-powered vehicles— also indicate significant savings on overall ownership costs. EVs also require fewer
moving parts, thus enabling users to save on maintenance costs versus conventional vehicles. Also, apart from reducing air pollution, EVs can reduce noise pollution as they are significantly quieter than conventional vehicles. This bill, which seeks to amend RA 11697, proposes a zero tariff rate for the importation of fully built electric vehicles for a period of five years from the date the bill is enacted into law. In effect, these incentives will offset the overall cost of EVs and will enable EVs to become cheaper. In view of the foregoing, approval of this bill is earnestly requested. JINGGOY EJERCITO ESTRADA (
DI!! One of me tradar TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session AUG -5 P2:07 SENATE RECEIVEO BY S. No. _ Introduced by Senator Jinggoy Ejercito Estrada AN ACT PROVIDING FOR THE TAX AND DUTY TREATMENT OF ELECTRIC VEHICLES, AMENDING OR THE PURPOSE REPUBLIC ACT NO. 11697, OTHERWISE KNOWN AS THE "ELECTRIC VEHICLE INDUSTRY DEVELOPMENT ACT" Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Section 4 of Chapter I of Republic Act No. 11697, otherwise known
as the "Electric Vehicle Industry Development Act", is hereby amended to read as follows: "SEC. 4. Definition of Terms. - As used in this Act, the following terms shall be defined as stated below: "XXX "(k) Electric vehicle (EV) refers to a TWO-WHEELED, THREE-WHEELED, OR FOUR-WHEELED vehicle OR SUCH OTHER VEHICLES with at least one (1) electric drive for vehicle propulsion. For purposes of this Act, it includes a BEV E, hybrid electric vehicle, light clectric vehicle,] and a plug-in hybrid-electric vehicle; "XXX."
Sec. 2. Section 24(b) of Chapter IV of the same Act is hereby amended to read
as follows:
"SEC. 24. Fiscal Incentives. - "X XX "(b) Importation "The importation of completely built units of EVs shall be entitled to the incentives under Republic Act No. 10963, otherwise known as the "Tax Reform for Acceleration and Inclusion (TRAIN)": Provided, That in the case of imported electric jeepneys and electric tricycles, the Department of Finance, upon recommendation of the DTI, may suspend the exemption in order to protect local manufacturers. "THE IMPORTATION OF COMPLETELY BUILT UNITS OF EVS SHALL BE SUBJECT TO A TARIFF RATE OF ZERO PERCENT (0%) FOR A PERIOD OF FIVE YEARS FROM THE DATE OF EFFECTIVITY OF THIS ACT. "The importation of completely built units of charging stations shall be exempt from the payment of duties for eight (8) years from the effectivity of this Act. "The importation of capital equipment and components used in the manufacture or assembly of EVs and construction or installation of charging stations shall undergo an evaluation process to determine [their] inclusion in the [strategic investment priority plan] STRATEGIC INVESTMENT PRIORITY PLAN and [possible] entitlement to the incentives and for the length of time as provided under the Omnibus Investments Code of 1987, as amended, Title XIII of the National Internal Revenue Code of 1997, as amended, and other applicable laws.
Sec. 3. Implementing Rules and Regulations. - Within ninety (90) days after
the effectivity of this Act, the Department of Transportation, in coordination coordination with the National Economic and Development Authority, shall issue rules and regulations for the effective implementation of this Act.
Sec. 4. Repealing Clause. - All laws, decrees, executive orders, rules and
2 regulations, or parts thereof inconsistent with the provisions of this Act are hereby repealed or modified accordingly.
Sec. 5. Separability Clause. - If, for any reason, any section or provision of this
5 Act is held unconstitutional or invalid, the other sections or provisions hereof shall not 6 be affected thereby.
Sec. 6. Effectivity. - This Act shall take effect after fifteen (15) days following
its complete publication in the Official Gazette or in a newspaper of general circulation. Approved,