REPRE,
Ls y

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

‘TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. 3924

Introduced by REP. YSABEL MARIA J. ZAMORA and
REP. JUAN CARLOS “ARJO” C. ATAYDE

EXPLANATORY NOTE

Republic Act No. 11697 or the Electric Vehicle Industry Development Act, enacted in
2022, aims to accelerate the development, commercialization, and utilization of electric vehicles
(EV) in the Philippines. Section 25 of the law provides for non-fiscal incentives to encourage this,
transition but limits their availability to eight (8) years from the effectivity of the Act or until
2032.

However, considering the current pace of EV adoption, infrastructure development, and
the environmental challenges faced by the country, this period is not sufficient to catalyze a
sustainable shift toward electric mobility.

First, EV adoption in the Philippines remains low. According to data from the Electric
Vehicle Association of the Philippines, there are only around 16,000 electric vehicles in the
country as of 2023."

Second, EV infrastructure still lags. As of April 2025, the Department of Energy (DOE)
reported only 912 operational EV charging stations across the country —far below the target of
7,300 by 2028 under the Comprehensive Roadmap for the Electric Vehicle Industry”

Third, the Department of Environment and Natural Resources (DENR) estimates that
74% of air pollutants come from transport sources.’ Transitioning to EVs and hybrids could
significantly reduce carbon emissions, thereby reducing air pollution in the country.

Fourth, EV prices remain prohibitive despite tax incentives. Brand-new EVs in the
Philippines remain more expensive than internal combustion engine vehicles. Removing the
8-year limitation on non-fiscal incentives can help bridge this cost gap and attract more users.

Fifth, our neighboring ASEAN countries such as Malaysia, Thailand and Indonesia have
also adopted aggressive economic policies to facilitate the growth of their local EV industries.
Limiting the non-fiscal EV incentive policies of the Philippines to only eight (8) years places the
country at a competitive disadvantage in attracting EV manufacturers and investors.

‘ https:/fousiness.inquirer.net/43854 /registered-evs-in-ph-grew-more-than-twofoldin-frst-semester


In light of the above, the immediate passage of this measure is earnestly sought to
maintain momentum toward a green transport future, achieve national climate goals, and
provide Filipinos access to cleaner and more efficient mobility.

(RIA J. ZAMORA REP. JUAN CARLGS “ARJO” C. ATAYDE
, City of San Juan Ist Distriq} Quezon City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

‘TWENTIETH CONGRESS
First Regular Session

HOUSE BILLNO. 3924

Introduced by REP. YSABEL MARIA J. ZAMORA and
REP. JUAN CARLOS “ARJO” C. ATAYDE

AN ACT
AMENDING SECTION 25 OF REPUBLIC ACT NO. 11697, OTHERWISE KNOWN AS THE
“ELECTRIC VEHICLE INDUSTRY DEVELOPMENT ACT,” BY REMOVING THE
EIGHT-YEAR LIMITATION ON THE GRANT OF NON-FISCAL INCENTIVES TO
ENCOURAGE THE TRANSITION TO ELECTRIC AND HYBRID VEHICLES AND FOR
OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SECTION 1. Section 25 of Republic Act No. 11697 is hereby amended to read as follows:

SEC. 25. Non-Fiscal Incentives. - The following non-fiscal incentives shall BE
GRANTED TO SUPPORT THE TRANSITION TO ELECTRIC VEHICLES, AND
SHALL remain in force UNLESS OTHERWISE AMENDED BY LAW [foreight (8)
years trom the ehectivity of thie Act]:

(a) For EV users:

(1) Priority registration and renewal of registration, and issuance of a special
type of vehicle plate by the LTO;

2) Exemption from the mandatory unified vehicular volume reduction
program, number-coding scheme, or other similar schemes implemented by the
Metropolitan Manila Development Authority, other similar agencies, and LGUS;

(3) Expeditious processing by the LTFRB of applications for franchise to
operate, including its renewal, for PUV operators that are exclusively utilizing EVs;
and

(4) Availment of TESDA Training Programs on EV assembly, use,
maintenance, and repair for its employees;

(b) For EV manufacturers and importers, the expeditious processing by the
Bureau of Customs on the importation of parts and components for the
manufacture and assembly of EVs; and


(©) For EV manufacturers, the government shall allow expert foreign nationals
to be employed under a form of technology transfer agreement, subject to the
guidelines that shall be issued by the DOLE, the Professional Regulatory
Commission, and the DTI.

SEC. 2. All laws, executive orders, rules and regulations inconsistent with this Act are hereby
repealed or modified accordingly.

SEC. 3. This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in
a newspaper of general circulation.

Approved,