The Government of the Philippines has promulgated Executive Order No. 121, establishing the Electric Vehicle Incentive Strategy (EVIS) Program. The regulatory initiative seeks to attract foreign and domestic capital, promote the localization of electric vehicle (EV) manufacturing, and position the Philippines as a regional automotive manufacturing hub. The EVIS Program provides fiscal and administrative support for hybrid and battery electric vehicles, passenger and commercial vehicles, and their critical parts and components.
The Board of Investments (BOI) serves as the lead implementing and coordinating agency, responsible for issuing operational guidelines and submitting annual reports to the Office of the President. The program is administered in coordination with the Inter-Agency Committee on Electric Vehicle Industry Development (IAC-EV Committee), chaired by the BOI and composed of undersecretary-level representatives from the Departments of Finance (DOF), Energy (DOE), Transportation (DOTr), and Budget and Management (DBM). The BOI also serves as the Secretariat of the IAC-EV Committee, providing technical and administrative support. Upon the committee’s recommendation, the BOI may issue a Certificate of Registration to qualified participants, subject to the posting of a performance bond.
Applicants may register a maximum of two (2) EV models, which are evaluated based on five (5) criteria, such as (1) proposed investments in the manufacture or assembly of EVs, (2) planned total production volume, (3) projected economic impact of the proposed investment including employment generation and industry linkages. Registered participants must (4) comply with the applicable Philippine National Standards and United Nations Regulations, specifically UNR 100 and/or 136. Applicants must also submit a (5) proposed after-sales support services plan covering battery disposal or recycling recycling plan, as well as spare parts support for at least ten (10) years.
The program provides two (2) forms of fiscal support: (1) Fixed Investment Support (FIS) and (2) the Production Volume Incentive (PVI). Under the FIS framework, registered battery EV manufacturers may receive support equivalent to 40% of qualifying capital expenditure (capex), while manufacturers of hybrid, plug-in hybrid, and fuel cell EVs may receive 30% support, subject to a minimum investment of PHP 5 billion. Under the PVI framework, qualified participants may receive up to 12% of the ex-factory unit price, capped at PHP 200,000 per unit, subject to a minimum production commitment of 10,000 complete EV units and the domestic manufacture of mandatory parts and components.
The EVIS Program is subject to a PHP 60 billion total program ceiling, funded through annual appropriations, with a PHP 15 billion fiscal support cap per enrolled model. Approved incentives are provided through non-transferable Tax Payment Certificates (TPCs), which may be used to offset corporate income tax, excise tax, value-added tax (VAT), and customs import duties. The fiscal incentives may be granted for a maximum of ten years. To maintain these benefits, participants must introduce their registered EV models to the domestic or export market within three years of registration and remain in continuous compliance with BOI standards.