Albay 2nd District Rep. Joey Salceda has filed a bill that seeks to amend the Electric Vehicle Industry Development Act (Evida).

House Bill 9573 will revamp the tax and duty system of electric vehicles (EVs) and will redefine EVs to include two-wheeled vehicles.

Salceda said that the groundbreaking measure will enhance the electric vehicle industry, boost the Philippines' commitments to the international community under the Paris Agreement and reduce the country's reliance on fossil fuels.

Albay 2nd District Rep. Jose Maria Clemente ‘Joey’ Salceda. CONTRIBUTED PHOTO

He pointed out that 60 percent of electric vehicles in the Philippines are two-wheeled, which means that "the vast majority of electric vehicles do not benefit from the tax incentives granted under the law." He added that two-wheeled electric vehicles "are the most affordable electric vehicles" because these cost only around 3 percent of the price of an electric car.

The lawmaker said that the country's rising net petroleum import bill -- from $11.57 billion in 2021 to $19.02 billion in 2022, underscores the need to transition to sustainable alternatives.

"While the EVIDA has successfully propelled a six-fold increase in electric car sales in 2023 compared to 2022, limitations in the law have excluded two-wheeled electric vehicles from crucial fiscal incentives," Salceda said.

"Electric vehicles are generally more sustainable because renewable energy accounts for some 26.4 percent of the country's power, while some 99.77 percent of cars still use fossil fuels," he added.

The exclusion of two-wheeled electric vehicles from the fiscal incentives provided under the Evida law to electric vehicles "is inequitable," the lawmaker said.

"Encouraging electric cars while locking out electric motorcycles does not address congestion issues, but merely substitutes petroleum-fueled cars for their space on the road," he said.

HB 9573 aims to grant zero percent duty on the importation of completely built electric vehicles until 2029. Charging stations and related components will also be tax-exempt for eight years.