The committees on Ways and Means, and Trade and Industry at the House of Representatives have jointly approved a consolidated bill that seeks to provide incentives for the manufacture, assembly and conversion of electric, hybrid and other alternative-fuel vehicles (AFVs).
Although the newly-consolidated bill is still unnumbered, it effectively integrates House Bill (HB) 0001 authored by former Rep. Ronaldo Singson and Rep. Jose Ma. Zubiri III (3rd District, Bukidnon); HB 4794 by Rep. Hermilando Mandanas (2nd District, Batangas); HB 5139 by Rep. Ryan Luis Singson (1st District, Ilocos Sur); and HB 5161 by Reps. Rufus Rodriguez (2nd District, Cagayan de Oro) and Maximo Rodriguez, Jr. (Party-list, Abante Mindanao).
According to Mandanas, who chairs the House Committee on Ways and Means, the consolidated bill "seeks to address the climate change problem by providing fiscal and non-fiscal incentives, which will promote the market for 'cleaner' vehicles, paving the way for the realization of a healthier environment."
Under the bill, manufacturers or assemblers that export completely knocked-down parts of electric, hybrid and other AFVs--including the conversion of vehicles into electric, hybrid and other AFVs--shall be exempted from paying excise taxes and duties for nine years upon the effectivity of the act.
In addition, the importation of raw materials, spare parts, components and capital equipment used in the manufacture or assembly of electric, hybrid and other AFVs--including the conversion into such vehicles--shall be exempted from paying the value added tax (VAT) for nine years.
On the other hand, the sale of raw materials, spare parts, components and capital equipment used in the manufacture or assembly of electric, hybrid and other AFV, including the conversion into such vehicles, shall be exempted from paying VAT for nine years while the importation of completely built units of electric, hybrid and other AFVs shall also be exempted from the payment of excise taxes and duties for four years from the effectivity of the Act.
To avail of the incentives if the bill is passed into law, the manufacturers, assemblers, converters and importers of electric, hybrid and other AFVs should register first with the Department of Finance.