Electric vehicle incentives strategy program 'need not mirror' CARS program -- DOJ
The Electric Vehicle Incentives Strategy program (EVIS) being developed by the Board of Investments (BOI) need not mirror or be identical in its entirety to the Comprehensive Automotive Resurgence Strategy (CARS) program, the Department of Justice (DOJ) said.
The DOJ’s legal opinion was issued by DOJ Secretary Fredderick A. Vida and addressed to Department of Trade and Industry (DTI) Undersecretary Ceferino S. Rodolfo, also BOI managing head.
Vida said: “The EV incentives strategy to be adopted under the EVIDA (Republic Act No. 11697 or the Electric Vehicle Industry Development Act) does not need to mirror the CARS Program in its entirety.”
He said that Section 24 of EVIDA only requires that the EV incentives strategy be similar, not identical to the CARS program.
Thus, Vida said, the EV incentives strategy under the EVIDA may use any legal incentive mechanism which may or may not include a TPC (Tax Payment Certificate).
He also said: “In the present case, the EVIDA merely requires that the EV incentives strategy be ‘similar’ to the CARS program. Further, it does not appear that the term ‘similar’ was given a technical definition.”
The CARS program was launched in 2015 through Executive Order (EO) 182. It is aimed at spurring investments in local vehicle manufacturing through government incentives.
EVIDA, on the other hand, was created to promote the EV industry in the country.
Rodolfo sought the DOJ’s legal opinion after the draft EVIS was presented to the Fiscal Incentives Review Board (FIRB).
During the presentation, Rodolfo said that the FIRB raised concerns whether the EV incentives strategy under EVIDA need not mirror the CARS program.
He also said that the FIRB asked whether the EV strategy may provide incentive mechanisms like a Tax Credit Certificate (TCC) instead of a TPC used in the CARS program.