The Electric Vehicle Incentive Strategy (EVIS) of the Department of Trade and Industry (DTI) has set lofty economic targets, including influx of PHP120 billion investments, creation of around 680,000 jobs, government tax revenue generation of PHP400 billion, USD30 billion in foreign exchange savings, and a humongous PHP11.4 trillion in economic output.
DTI Secretary Cristina A. Roque said the EVIS has been endorsed and awaiting approval from the Fiscal Incentives Review Board for the planned incentive strategy for EVs.
According to Roque, the new strategy, which is part of the manufacturing component of the Comprehensive Roadmap for the EV Industry, is expected to attract PHP120 billion in capital investments that would achieve the target to create 680,000 jobs.
In addition, the EVIS is expected to boost the government’s tax revenue by PHP400 billion compared to a fully import-based EV market, funding essential public services. It will also save the country up to USD30 billion in foreign exchange by reducing dependence on imported vehicles and parts.
The said influx of investments will also generate about PHP 11.4 trillion in economic output.
Roque further that said that EVIS sets ambitious yet attainable production targets from 2028 to 2040, supporting the local rollout of up to nine million electric vehicles, including two-and three-wheelers, passenger cars, buses, and trucks, along with nearly 400,000 charging stations.
Incentives
Crafted by the DTI’s Board of Investment, the proposed EVIS is anchored on the Electric Vehicle Industry Development Act (EVIDA) to provide targeted fiscal and non-fiscal incentives that stimulate local production. It aims to attract investments in the manufacture of EVs, batteries, motors, components, and the EV infrastructure such as charging stations, and testing facilities. The incentive structure supports both capital investment and sustained production.
The government incentives may include fiscal support in the form of an income tax deduction certificate that can be used to defray income tax obligations during commercial operations.
Eligible companies will be required to comply with Philippine and international standards, provide long-term after-sales support, and submit BOI-vetted investment plans.
DTI is working closely with the FIRB to finalize the EVIS, which is scheduled for deliberation next month, July 2025.
