The 21st Davao City Council on Tuesday approved the Davao City Electric Vehicle Ordinance of 2026.
The landmark ordinance aims to give incentive to key players of electric vehicle related activities such as manufacturers, dealers, users, public conveyance operators, spare parts suppliers, charging stations and environmentally sound battery disposal and recycling facility.
Davao City Councilor Temujin “Tek” Ocampo said that the ordinance provided a wider coverage of incentives for key players in the EV industry and not just for manufacturers.
“This ordinance that we approved today for the third and final reading, the EV ordinance of Davao City is purposely crafted para makatabang ta sa mga players nga wala maapil sa Electric Vehicle Industry Development Act (EVIDA). Ang naa lang man gud sa EVIDA law are the manufacturers who are entitled to the incentive, wala didto ang mga dealers, wala didto ang charging station operators, recyclers, and part suppliers. What we did in this ordinance we include them para maapil sila didto sa mga incentives nga ginahatag sa City of Davao (This ordinance that we approved today on the third and final reading, the EV ordinance of Davao City, is purposely crafted to help the players who were not included in the EVIDA law. Under the EVIDA law, only the manufacturers are entitled to incentives. Dealers, charging station operators, recyclers, and parts suppliers were not included. What we did in this ordinance was to include them so they can also benefit from the incentives being provided by the City of Davao),” he said, adding that the manufacturers are still covered.
He said that the ordinance sets the criteria for eligible companies for the local tax incentive up to a maximum of six (6) years and other applicable fees and incentives including payment of mayor’s permit fees, licenses, excluding government permit and service fees.
For Manufacturers or Assemblers engaged in Domestic Oriented Manufacturing should have a minimum paid-up capital of Php 100 million, while Export-Oriented Manufacturing are required to have a minimum paid up capital of Php 200 million.
Distributors or Dealers must have minimum investment of Php 10 million; Charging Station Operators with a minimum investment of Php 2 million ; and EV Battery Recycling and Electronic Waste Repurposing Enterprises with a minimum investment of Php 2 million.
In all key players, at least 70 percent of its employees must be residents of Davao. Other employment requirements are also provided for in the ordinance according to their classification.
“They should apply for the incentives with the following criteria, to the Davao City Investment Board which is also nakabutang pud sa ordinance na sila pud ng mu-approve kung pila ka tuig ang maximum na ihatag sa ilaha (as it is provided in the ordinance that they shall be the one to approve how many years and maximum years that they will give) based on the criteria and qualifications of the company that will apply for incentives,” Ocampo said.
All local incentives shall be subject to prior evaluation and recommendation by the Davao City Investment Promotion Center (DCIPC), and approval by the Davao City Investment Incentive Board (DCIIB), in accordance with its duly established guidelines and rules.
Ocampo said that the ordinance also covers EV users, who are entitled to free parking for the first three (3) hours in all designated pay parking areas managed by the City Government of Davao for ten (10) years. Malls and other private establishments shall be encouraged to provide free parking. The same ordinance, also reiterated the vehicle registration discounts for EV users at the Land Transportation Office.
The ordinance provides for Full Autonomy Protection which bars unlawful deactivation of EVs or the bypass of factory-installed anti-theft mobilizer system, including acts undertaken for the purpose of repossession and/or the purpose of collecting fees and other charges.
The ordinance, pursuant to the EVIDA law also provides for the creation of the Electric Vehicle Monitoring Committee that is to be headed by the City Mayor’s Office a recommendatory body primary tasked to coordinate, review, and recommend policies, measures, and actions for the effective implementation of this Ordinance, including price monitoring.
The ordinance shall be subject for review every 3 years in order to assess its fiscal impact and effectiveness.
After the approval, the Implementing Rules and Regulations (IRR) shall be created by the City Mayor’s Office prior to full implementation. CIO