House bill granting tax breaks to eco-friendly car makers OK’d on 3rd reading

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MANILA, Philippines–A measure recently approved by the House of Representatives seeks to provide tax breaks for manufacturers and importers of environment-friendly vehicles.

House Bill 5460, which seeks to alleviate the country’s dependency on imported fossil oil by paving the way for introduction of electric, hybrid or alternative-fuel cars through exemptions from taxes, was approved on third and final reading.

The measure seeks to exempt those manufacturing, converting or importing such vehicles from excise taxes and duties for nine years from the effectivity of the law for the manufacture or assembly of completely knocked-down parts of electric, hybrid and other alternative fuel vehicles.

For those nine years, they will also be exempted from the paying value-added tax for importing raw materials, spare parts, components and capital equipment used in the manufacture or assembly of electric, hybrid and other alternative fuel vehicles as well as conversion into such vehicles.

It also proposes having zero percent value-added tax rate during the said period on the sale of raw materials, spare parts, components and capital equipment used in the manufacture or assembly of electric, hybrid and other alternative fuel vehicles including the conversion of vehicles into electric, hybrid and other alternative-fuel vehicles.

It defines a hybrid vehicle as one that combines technologies using internal combustion engine (ICE) with a battery-powered electric motor to gain advantages of both propulsion systems.

An alternative-fuel vehicle uses other sources of energy in place of fossil fuel products, which include solar, wind, hydrogen fuel cell, compressed natural gas,  liquefied natural gas and liquefied petroleum gas.

The electric car is described as one that makes use of electric motors solely for propulsion.

One of its authors, Batangas Representative Hermilando Mandanas, said that it was important to make such vehicles accessible and more popular to Filipinos and that this could be done by bringing down their prices through exemptions from excise, import and value-added taxes.

“If you bring down the cost of importation and manufacturing, you lower the prices and more people can afford to buy them,” he explained, pointing out that the measure could be part of the groundwork for the widespread use of electric or hybrid vehicles.

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  • akosimickeymouse

    DAPAT TUTULUNGAN NG GOBYERNO YUNG MICHEL GITANO SA PAG MASS PRODUCE NG KANILANG DESIGN NA E-VEHICLES….AT MANGHIKAYAT DIN MGA BUSINESSMAN NA MAGLAGAY NG MGA CHARGING STATIONS NA ECO FRIENDLY TULAD NG SOLAR POWER… 

  • Mario_Garcia

    Encourage production of these cars in the Philippines.  

  • ryan andres

    i hope these tax breaks equate to more competitive prices…agree with picker_blend’s comment below, ang mahal pa rin ng Prius eh! (although the price went down from the 1st gen Prius, it still has a lot to slide down in order for the average Juan to start getting interested)

    But overall I think this is good news. Now only if they bring down electricity prices… hahaha

  • http://jaoromero.com/ Jao Romero

    this should be two-way. tax breaks for eco-friendly car and heavy taxes for gas guzzlers.

  • http://profile.yahoo.com/KYHQOFE6JOGLCZNCCWDWK6GE6U Pauline

    Eh sino naman ang bibili ng electric car ang mahal mahal ng kuryente sa Pilipinas! mga ugok hindi nag-iisip! sumasabay lang sa agos ng mga environmentalists pero hindi naman nasosolusyonan ang talagang problema ng enerhiya sa bansa!!! ugok! ugok! ugok! 

    wala tong kwenta! wala naman electric power stations sa bansa! paano kapag nawalan ng power yang electric car mo sa tingin mo may magpapasaksak sayo ng plug sa bahay ng ibang tao??? ugok! ugok! ugok!

    • http://profile.yahoo.com/RXZ5XENTQSFR6HPWMLEUG3TGGY Kerby

      tama! katangahan nanaman tong Bill na to. Mahal kaya ng kuryente. mas lalo pang mapapamahal ang mga tao dito eh. tapos malamang mahal din ng kotse na to.

    • akosimickeymouse

      CNUNG UGOK…UGOK…UGOK…LOL…PWEDE NMAN MAGLAGAY NG CHARGING STATION NA SOLAR POWER…KUNG MAKAPUNTA KA SA PALAWAN MAY TRIKES AT EAGLE MOTORCYCLE NA SILA WHICH LOCALLY MADE….

  • ghzoc

    Thats very good news. Hybrids and electrics are very suitable in Philippine driving conditions due to short distances and slow moving traffic. The problem is that electric and hybrid vehicles alike are quite expensive for average motorist. Additional infrastructure such as charging stations for electric vehicles are needed… i mean A LOT of them since these vehicles have very limited range. (160km the most). I do hope that these cars will become the future of motoring. 

  • picker_blend

    finally! hope that the prius will become more affordable!

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