LAWMAKERS are seeking to amend the Incentive Code to incentivize operations and distribution of electric powered vehicles, the Davao City Investment Promotions Center (DCIPC) said.
During the “Business Forum at NCCC” on Friday, Christian Cambaya, head of the DCIPC’s Investor Assistance and Servicing Unit, said incentivizing e-vehicles as green investments is part of the proposed amendments.
“We have conducted committee hearings twice with the trade, commerce and industry committee and the environment committee, and we proposed to amend the Incentive Code,” Cambaya said.
While a national law for incentivization, it is limited to research and development, manufacturing, disposal of batteries, so the local government wants to craft its own legislation.
“We added a new unique to the city government. Now, distribution will also be incentivized, car dealers selling electric vehicles will also be provided incentives, as long as they sell electric vehicles,” he added.
The incentives will be uniform in all priority investment areas, which includes green investments in this matter.
The proposal includes a five-year business tax exemption, three years for real property tax, and five years for mayor’s permit, which are significantly higher than the present three for business tax exemption, two for real property tax, and three for mayor’s permit.
Cambaya said this will lure more investors not only on green investments, but other priority areas such as food manufacturing, logistics businesses, infrastructure technology sector, agriculture technology and digital health systems and health sector.
Vietnamese firms Green and Smart Mobility (GSM) and VinFast are set to launch the electric powered taxi units in the city on November 28.
The 500 e-vehicles arrived at the Port of Davao in late October. However, not all 500 units will be operated directly by GSM, as it is looking for distributors.
“Currently there are 500 taxis now in the port and they have already found an area with a depot somewhere in Sasa,” he said.
Cambaya said the firm is going to operate in the city anytime soon pending approval of its permit and franchising requirements.
The investors have allocated $500 million for operations in the Philippines, covering Metro Manila, Cebu, and Davao City, with a full commitment of $1 billion. This is the fourth country the firm is operating. The other countries include Vietnam, Laos and Indonesia.
Photo credit: Metro Davao Rising
