Senators consolidate incentives for electric and hybrid vehicles

Good news for local assemblers, distributors and potential buyers
May 10, 2011 Philippine Car News - Senate bill consolidates incentives for electric/hybrid vehicle

The rising price of petroleum has prompted members of the Philippine Senate to consolidate bills that seek to grant incentives to electric and hybrid vehicles assemblers, distributors and owners into one consolidated measure.

"Other countries like Israel and China are already declaring freedom from petroleum dependence in the next three or four decades, we want to start the ball rolling by paving the way for a legislation that would fast track our shift to E-vehicles," said Senator Ralph Recto, chairman of the Senate ways and means committee. "With soaring oil prices and with a downstream oil industry that can't be trusted with its price hike computations, there's really no recourse but to go electric to save oil money and save the environment."

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According to Recto, his committee is coming up with a consolidated measure that aims to give out tax incentives to people or organizations that "will import, convert, manufacture or assemble the pioneering fleet of electric vehicles in the country, including hybrid and other motor vehicles using alternative fuel."

Recto added that the excise taxes and value-added tax exemptions could be as long as nine years to bring down the price of importing and converting electric vehicles and hybrids, resulting in lower prices that make purchasing an electric or hybrid vehicle more accessible to customers.

The measure also provides for other non-tax rewards like the exemption from the Motor Vehicle User's Charge, the number-coding scheme, the establishment of special priority lane for electric vehicle and hybrid owners and operators when registering or renewing the vehicles with the Land Transportation Office (LTO), and mandatory provision of parking facilities in every future commercial and public establishments.

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Recto added that the proposed measure would ask the LTO to issue special license plates for these vehicles. Also under the proposal, business owners whose parking blueprints do not have a specially designated area for these vehicles should not be issued a building permit.

The consolidated measure combines similar bills filed by Recto and colleagues Juan Miguel Zubiri, Miriam Defensor-Santiago and Antonio Trillanes IV.

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