DAVAO CITY, Philippines – Davao City is seeking incentives for businesses and transport operators to invest in electric vehicles that will promote environmentally friendly and sustainable transportation in the city.
The 21st Davao City Council has passed an ordinance to encourage investments in electric mobility and strengthen Davao City’s push for sustainable transportation.
The ordinance’s sponsor, First District Councilor Temujin Ocampo, said this local law is in line with Republic Act No. 11697, or the Electric Vehicle Industry Development Act (EVIDA) and complements the existing Davao City Local Incentive Code.
Tax holidays for up to six years will be availed by qualified EV-related business enterprises, subject to evaluation by the Davao City Investment Incentive Board.
Non-regulatory fees, such as mayor’s permits may be covered in line with the city government’s ease-of-doing-business initiative. But regulatory fees such as building permits and garbage fees will remain collectible.
The measure covers EV manufacturers, distributors, charging station operators, parts suppliers, battery disposal, and recycling facilities. Under the ordinance, domestic-oriented manufacturers must have a minimum paid-up capital of P100 million and at least 20 employees to qualify for incentives, while export-oriented manufacturers must invest at least P200 million and have at least 25 employees.
Meanwhile, distributors and dealers must have a minimum investment of P10 million, while charging station operators and EV recycling facilities need at least P2 million in initial investment to qualify for incentives.
Councilors discuss other aspects to promote the switch to electric vehicles.
Councilor Alberto Ungab (3rd district) proposed conducting a study to assess Davao City’s power supply capacity, while Councilor Al Ryan Alejandre suggested looking at the availability and accessibility of charging stations all over the city.
Ocampo said those concerns will be covered by a committee to coordinate and oversee the policies, measures and price monitoring related to electric mobility.
Martin Hao of Electryx and President of Maligaya Taxi was present in the council session, and expressed interest to switch to electric vehicles, adding that the incentives could directly benefit consumers by making electric vehicles more affordable and accessible to the public.
“Since there are tax incentives, the vehicles will hopefully be cheaper and more affordable for the people. They can transition from ICE to electric cars more easily,” Hao said.
He also highlighted the environmental benefits of expanding EV infrastructure.
“Well, first and foremost, on the green side, where there is no air pollution, since
it’s an EV, there are no carbon emissions,” Hao said, adding that some charging stations may also utilize solar-powered and hybrid charging systems to promote sustainability.”(davaotoday.com)
