ELECTRIC public utility vehicles (E-PUVs) to modernize the jeepney fleet need to be largely domestically made to create jobs, the Board of Investments (BoI) said, adding that it intends to offer “solutions” for manufacturers planning to do so.
In an online briefing, Trade Undersecretary and BoI Managing Head Ceferino S. Rodolfo called the outlook for domestic manufacturing “a unique opportunity.”
“The demand is here, so it will be better if we are going to support those that are locally made so more Filipinos can benefit from this, and also so we can complete our electric vehicle (EV) ecosystem,” he added.
He said the modernization of the jeepney fleet is only a first step, and that the government should target a full shift to domestically manufactured EVs order to spur industrialization.
“If you just shift to EV, and then fulfill this massive demand in the Philippines through imports, then we will just go back to (out current situation) where we are dependent on imported internal combustion engines, oil, and petroleum,” he added.
He cited the need to subsidize initial investment, tax breaks, and the availability of charging stations and spare parts as the issues brought up by potential investors.
“From the very beginning, the industry has been asking for subsidies for their initial investments. Because, as we all know, especially in a nascent industry, income will come a bit later as we develop the market,” Mr. Rodolfo said.
“Unfortunately, that is what we are grappling with in the government. The tools, mechanisms, and resources that we have currently only allow us to provide income tax-based support, which happens only after they start earning income,” he added.
St. Baker Group’s Jose Montaño said his problems as a supplier of e-tricycles is the 12% value-added tax (VAT) and 2% surcharge.
“If the government really is serious about supporting EV manufacturing here in the Philippines, they should seriously look at this issue of VAT,” he said.
“In contrast, completely built-up units imported from China… are exempt from such taxes. So, I think (the government) should take a look at that. There’s a little imbalance there,” he added.
Alliance of Concerned Transport Organizations National President Liberty Deluna said it fully supports the PUV modernization program but noted the need for more charging stations.
“We recognize the benefits of using EVs … what we are only asking for is the availability of charging infrastructure in the parking areas,” she said.
“Another worry of our operators is the availability of spare parts; we need to have after sales service,” she added. — Justine Irish D. Tabile