R.A. 11697 IRR now in effect: Electric vehicle owners exempt from number coding, pay cheaper LTO fees

VJ · Sep 20, 2022 06:10 PM

R.A. 11697 IRR now in effect: Electric vehicle owners exempt from number coding, pay cheaper LTO fees 01

If you've been considering buying an electric vehicle (EV), a new law has made joining the "electric revolution" more enticing.

EV owners can now get various incentives under the implementing rules and regulations (IRR) of Republic Act 11697, also known as the "Electric Vehicle Industry Development Act," which came into effect on Sept. 20, 2022.

R.A. 11697 lapsed into law on Apr. 15, 2022, under then-President Rodrigo Duterte. The measure mandated the release of the IRR within 120 days of the law's enactment.

R.A. 11697 IRR now in effect: Electric vehicle owners exempt from number coding, pay cheaper LTO fees 01

The Hyundai IONIQ 5, previewed at PIMS, will be the Korean company's first entry into the local EV category.

The perks of buying an EV

Under Section 31 of the IRR, these perks include exemptions from number-coding schemes implemented by the Metropolitan Manila Development Authority and local government units. In addition, EV owners get priority at the Land Transportation Office (LTO) for all their registration concerns.

Under Section 30, the LTO will also provide a 30-percent discount for battery EVs and a 15-percent discount for hybrid EVs for the motor vehicle user's charge, vehicle registration, and inspection fees.

All these incentives will be available until April 2030.

R.A. 11697 IRR now in effect: Electric vehicle owners exempt from number coding, pay cheaper LTO fees 02

As the IONIQ 5's twin, the Kia EV6 will soon be launched with a sub-4 million peso price tag.

The measure also promotes the use of light EVs, which include electric scooters, electric bicycles and similar vehicles that weigh less than 50 kg. Users will get segregated lanes on all local and national roads, which will be shared with regular bikes.

These light EVs are likewise exempt from registration, so long as they are not operated on any public highway.

Discounts for EV purchases under consideration

The new law also enacts the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI), which will serve as the country's framework for developing four aspects of the EV sector:

  • EVs and charging stations

  • Manufacturing

  • Research and development

  • Human-resource development

However, CREVI does not include discounts and tax perks that EV buyers in other countries enjoy, except for completely built units that are imported.

Section 28 of the IRR currently pushes for creating an EV incentive strategy for manufacturers that includes a provision for future government subsidies for EV buyers.

R.A. 11697 IRR now in effect: Electric vehicle owners exempt from number coding, pay cheaper LTO fees 03

Nissan currently has stocks of the 2nd-generation Leaf on hand.

Transition to full-EV fleets

Meanwhile, CREVI will set the timeframe for when industrial and commercial companies, public transport operators, and government agencies will be required to have fleets that are at least five percent EV.

The framework aims to transition these sectors to become fully electric.

The law also mandates significant changes in infrastructure for EVs, including the construction of dedicated EV parking slots and charging stations in all new public and private establishments. Buildings that will be renovated must also comply with EV parking requirements.

The government will likewise set up "green routes" specifically for EVs and harmonize traffic rules for areas that accommodate electric and non-electric vehicles.

Do you think these measures in the EVIDA law's IRR are enough to make you buy an EV?

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