DOE may give tax breaks to e-vehicle makers

The Energy Department on Friday said it is willing to support the granting tax perks to manufacturers of electric vehicles — or e-vehicles — as the country is on the lookout for ways to reduce pollution and mitigate the impact of high oil prices. The department is supportive of e-vehicle production because the vehicle would be using non-fossil based fuels, resulting in reduced greenhouse gas emission and higher engine efficiency levels. “We will give them tax perks. They might be exempted also from number-coding scheme. We will think of ways how to give incentives to the industry," Almendras told reporters. Energy Undersecretary Loreta Ayson pointed out that e-vehicles promote clean energy and energy efficiency and reduce the impact of high oil prices. “The tax breaks will definitely give incentives to investors and users of e-cars. [But] this is still subject to review and approval of appropriate agencies in government," she said. The Energy Department is starting the e-vehicle program with the launch of e-tricycles powered with lithium batteries in Mandaluyong City, according to Almendras. The department also plans to deploy the e-tricycles to Pasig and Quezon City, he added. The Asian Development Bank (ADB) will initially finance the e-tricycles, and will later finance the e-cars, Almendras said, adding that there is also an ongoing study on e-jeepneys. The Philippines will host on Nov. 23-24 the 1st Philippine Electric Vehicle Summit to assess the country’s e-vehicles industry and the consumers’ readiness to adopt the technology. Raffy Villarreal, Motor Vehicle Parts Manufacturers Association of the Philippines president, said that the international carmakers foresee that e-vehicles and other “green" cars would account for about 5 percent of the world car market five years from now. “We need to look back and see how far we have gone, what the challenges are at the moment, and what needs to be done to take the domestic e-vehicle industry to the next level," he said. “[The] international carmakers also predict the international e-vehicle industry sales [would] grow by about 1 percent per year. By 2020, it is expected to account for about 10 percent of new car sales in the world market," said Ferdinand Raquelsantos, PhUV Inc. president. -- JE/OMG/TJD, GMANews.TV