New law exempts EVs from coding


James Deakin

Almost a quarter century has passed since the clean air act of 1999 promised to reduce harmful emissions and pollutants, but sadly, up until recently at least, it's mostly been a lot of hot air. That was until the new EVIDA law came into play, or the Electric Vehicles industry Development Act, which finally gives incentives to EV ownership. And it couldn’t have come any sooner.

So what exactly is the EVIDA law and what do you, as a consumer, need to know?

Well perhaps the biggest advantage of this new EVIDA law for the end user is the exemption from coding. This is huge. Because we all know that while the coding scheme was implemented to reduce the number of cars on the road, it ended up doing the complete opposite. Because most car owners simply bought their way out of the problem. So not only did it not remove one car off the road one day a week, it effectively added another one on it for six days. Because That’s the paradox of number coding. You now need two cars to do the job of one. Great for the auto industry, horrible for the environment. But finally, we have a law that addresses that.

EV and hybrid owners can now enjoy full exemption from coding, which nullifies the need for a second car, and puts them on a greener path to solving one of the biggest problems created by the transport sector: air pollution. Owners can also enjoy priority parking at establishments, who will soon be required to provide five percent of their spaces as dedicated parking for EVs.

Aside from the exemption from the number coding scheme and priority parking, the law provides a few more perks to sweeten up the transition. For example, EVs will be given “priority registration and renewal” with the Land Transportation Office (LTO) under the new law. This promises a faster and more efficient car registration/renewal process. It also offers discounts on registration costs, with a 30 percent discount for motor vehicle users charge (MVUC) that will be given for full EVs; and 15 percent off for hybrids for eight years from the effectivity of EVIDA.

EVs will also be issued with a special EV license plate under the EV Industry Development Act and will be entitled to tax incentives under the Tax Reform for Acceleration and Inclusion (TRAIN) law. This means hybrids get 50 percent off applicable excise taxes, while full battery EVs get a 100 percent excise tax exemptions. All in all, this not only brings down the initial cost of purchase, it also subsidizes running costs and adds convenience.

So basically, there has never been a better time to get an EV. With all the incentives provided under the law, not to mention the savings made at the fuel pump, the Philippines is now on the road to a brighter, cleaner future; one where we can all breathe a little easier, both figuratively and literally.