TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE 
S. No. 897
of f'u - ■'
25 AUG-5 P2-.07
RUCEiVcDBV
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
PROVIDING FOR THE TAX AND DUTY TREATMENT OF ELECTRIC VEHICLES, 
AMENDING OR THE PURPOSE REPUBLIC ACT NO. 11697, OTHERWISE 
KNOWN AS THE "ELECTRIC VEHICLE INDUSTRY DEVELOPMENT ACT"
EXPLANATORY NOTE
Republic Act No. 11697 or the Electric Vehicle Industry Development Act was 
passed in 2022 to provide an enabling environment for the development of electric 
vehicles (EVs), reduce reliance on fossil fuels, and help decarbonize the transportation 
sector by reducing greenhouse gas emissions.
An EV is driven by an electric motor that uses stored energy in its rechargeable 
batteries vis-a-vis a vehicle with a traditional internal combustion engine, which 
generates power by burning a mixture of gasoline and gases.
Over the years, the Philippines has been experiencing a growing adoption of 
electric vehicles (EVs) in the everyday lives of Filipinos, primarily driven by tax perks 
and a shift toward a more sustainable transportation option.
EV users—compared with conventional gasoline- or diesel-powered vehicles— 
also indicate significant savings on overall ownership costs. EVs also require fewer


moving parts, thus enabling users to save on maintenance costs versus conventional 
vehicles.
Also, apart from reducing air pollution, EVs can reduce noise pollution as they 
are significantly quieter than conventional vehicles.
This bill, which seeks to amend RA 11697, proposes a zero tariff rate for the 
importation of fully built electric vehicles for a period of five years from the date the 
bill is enacted into law.
In effect, these incentives will offset the overall cost of EVs and will enable EVs 
to become cheaper.
In view of the foregoing, approval of this bill is earnestly requested.
ING6DY EJERCITO ESTRADA


TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S. No.
SENATE
897
u.T-
of ri)f #i;:T.Mrp
25 AUG-5 P2 :07
RliCtiVtD BY
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
PROVIDING FOR THE TAX AND DUTY TREATMENT OF ELECTRIC VEHICLES, 
AMENDING OR THE PURPOSE REPUBLIC ACT NO. 11697, OTHERWISE 
KNOWN AS THE "ELECTRIC VEHICLE INDUSTRY DEVELOPMENT ACT"
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assem bled:
1 
Section 1. Section 4 of Chapter I of Republic Act No. 11697, otherwise known
2 
as the "Electric Vehicle Industry Development Act", is hereby amended to read as
3 
follows:
4 
"SEC. 4. Definition of Terms. - As used in this Act, the
5 
following terms shall be defined as stated below:
6 
"X X X
7 
"(k) Electric vehicle (EV) refers to a TWO-WHEELED,
8 
THREE-WHEELED, OR FOUR-WHEELED vehicle OR
9 
SUCH OTHER VEHICLES with at least one (1) electric drive
10 
for vehicle propulsion. For purposes of this Act, it includes a
11 
BEV ----------hybrid-electric vehicle, light electric vehicle,]
12 
and a plug-in hybrid-electric vehicle;
13 
"x X X."
14 
Sec. 2. Section 24(b) of Chapter IV of the same Act is hereby amended to read
15 
as follows:


1 
"SEC. 24. Fiscal Incentives. -
2 
"x X X
3 
"(b) Importation
4 
"The importation of completely built units of EVs shall
5 
be entitled to the incentives under Republic Act No. 10963,
6 
otherwise known as the "Tax Reform for Acceleration and
7 
Inclusion (TRAIN)": Provided, That in the case of imported
8 
electric jeepneys and electric tricycles, the Department of
9 
Finance, upon recommendation of the DTI, may suspend the
10 
exemption in order to protect local manufacturers.
11 
"THE IMPORTATION OF 
COMPLETELY BUILT
12 
UNITS OF EVs SHALL BE SUBJECT TO A TARIFF RATE
13 
OF ZERO PERCENT (0%) FOR A PERIOD OF FIVE
14 
YEARS FROM THE DATE OF EFFECTIVITY OF THIS ACT.
15 
"The importation of completely built units of charging
16 
stations shall be exempt from the payment of duties for eight
17 
(8) years from the effectivity of this Act.
18 
"The importation of capital equipment and components
19 
used in the manufacture or assembly of EVs and construction
20 
or installation of charging stations shall undergo an
21 
evaluation process to determine [their] inclusion in the
22 
[strategic-----investment-----priority-----plan] STRATEGIC
23 
INVESTMENT 
PRIORITY PLAN and [possible]
24 
entitlement to the incentives and for the length of time as
25 
provided under the Omnibus Investments Code of 1987, as
26 
amended. Title XIII of the National Internal Revenue Code of
27 
1997, as amended, and other applicable laws.
28 
"x X X."
29 
Sec. 3. Implementing Rules and Regulations. - Within ninety (90) days after
30 
the effectivity of this Act, the Department of Transportation, in coordination
31 
coordination with the National Economic and Development Authority, shall Issue rules
32 
and regulations for the effective implementation of this Act.


1 
Sec. 4. Repealing Clause. - All laws, decrees, executive orders, rules and
2 
regulations, or parts thereof inconsistent with the provisions of this Act are hereby
3 
repealed or modified accordingly.
4 
Sec. 5. Separability Clause. - If, for any reason, any section or provision of this
5 
Act is held unconstitutional or invalid, the other sections or provisions hereof shall not
6 
be affected thereby.
7 
Sec. 6. Effectivity. - This Act shall take effect after fifteen (15) days following
8 
its complete publication in the Official Gazette or in a newspaper of general circulation.
Approved,