Sen. Sherwin Gatchalian is optimistic his proposed Electric Vehicles and Charging Station Act will help reduce oil consumption in the country by as much as 146.56 million barrels per year and create $9.8 billion in savings or P490 billion per year, if implemented correctly.
Gatchalian, Senate committee on energy chairman, attributed the low market share of electric vehicles (EVs) in the Philippines to its expensive price compared with vehicles running on gasoline or diesel, and the lack of a national infrastructure for EV charging stations.
Under the proposal, private and public buildings, establishments as well as gasoline stations will be required to have dedicated parking slots with charging stations for EVs.
It also mandates large industrial and commercial companies, public transport operators and government agencies and instrumentalities to adopt a minimum 5 percent share of EVs within their respective fleets.
Likewise, the proposed legislation seeks to address the challenges in the development of the EV industry by mandating the creation of a comprehensive roadmap to be undertaken primarily by the Department of Energy together with the Department of Transportation, Department of Trade and Industry, Board of Investments and the Department of Science and Technology.
It also intends to provide fiscal and non-fiscal incentives for the importation, utilization and manufacture of EVs including a nine-year exemption from value-added tax, customs duties and discounts on the Motor Vehicle User’s Charge as well as expedited registration procedures for EV users.
Gatchalian said the proposed measure will help reduce the country’s greenhouse gas emissions and foster greater energy independence, especially as the transport sector is the biggest contributor to the Philippines’ total energy consumption at 35 percent.
