The Department of Trade and Industry (DTI) has approved the proposed incentives strategy for electric vehicle (EV) manufacturing and is seeking approval from the Fiscal Incentives Review Board (FIRB) by July.

Trade Secretary Cristina Roque informed the press that she had approved the draft EV Incentive Strategy (EVIS) of the Board of Investments (BOI) on 11th June.

Following this approval, she stated that the EVIS would be submitted to the FIRB on 13th June.

"We will coordinate with the FIRB for its inclusion in the next meeting, most likely in July," she said.

Under the Electric Vehicle Industry Development Act, the DTI, through the BOI, is required to recommend an EVIS to the FIRB for approval.

The EVIS forms part of the manufacturing component of the Comprehensive Roadmap for the Electric Vehicle Industry, which also includes the deployment of EV charging stations, research and development, and human resource development.

It aims to reduce the cost difference between electric vehicles and conventional internal combustion engine vehicles in order to support EV adoption.

The government plans to provide fiscal and non-fiscal support that is limited in duration, performance-based, and clearly defined, with the objective of encouraging investment in EV and EV parts manufacturing. The policy is focused on attracting manufacturers involved in electronic parts, strategic components, battery systems, charging infrastructure, and testing facilities.

Proposed fiscal support includes an income tax deduction certificate, which may be applied against income tax obligations during commercial operations.

According to the proposed EVIS, which was presented by the DTI to stakeholders in 2023, the government has set a production target of 6.3 million EV units by 2040 under the Clean Energy Scenario (CES), or 1.7 million units under the Business-as-Usual (BAU) scenario.

The proposal also outlines a target of 147,000 EV charging stations under the CES or 42,000 stations under the BAU scenario.