,-
, 
~!.'nlltr 
(!lIfo, •• f t~.fom.b,u 
FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
'10 
NOV 17 P6 :04 
SENATE 
S.No. 2598 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
EXPLANATORY NOTE 
The frequent adjustment of oil prices is an issue not new to us. According to the Department of 
Energy, the net increase for gasoline and diesel stood at P1.75/liter and PO.75!liter, respectively, 
in October this yearl. Latest reports show that these recent adjustments in oil prices can be 
attributed to the upward movement in 'the prices of refined petroleum products in the world 
marker. 
Admittedly, a lot has to be done to be able to cope with the current problems brought about by 
high prices of gasoline. This leads us t(i) the fact that energy-efficiency measures are very much 
significant today, given the fluctuating prices of gasoline in the country. Specifically, one 
solution to the worsening issue of frequent increase in gasoline prices has come about with the 
discovery of the so called "hybrid cars". 
Hybrid cars are vehicles which use ;echargeable battery system and normal gasoline-fueled 
power source for propulsion. This type of vehicles is found to consume less gasoline than 
conventional cars with pure internal combustion engines. Aside from their durability, hybrid cars 
do not contribute to air pollution as much as other cars do. 
Recognizing the potential contribution of using hybrid cars in energy-efficiency measures, this 
bill distinctively seeks to grant tax incentives to importers and manufacturers of hybrid cars in 
the country. 
In view of the foregoing, approval of this bill is earnestly requested. 
~'~i9r-
NIO "SONNY" F. TRILLANES IV 
Senator 
1 Department of Energy (DOE) Portal. Oil Monitor. Data retrieved on 04 November 2010, from 
http://www.doe.gov.phiopmJOilmonitor.htm. 
2 Gatdula, D. Oil finns hike gas price by 50¢. 06 October 2010. Data retrieved on 04 November 2010, from 
http://www.philstar.com/Article.asPl.?articleId=6183 63&publicationSubCategoryld=63. 
1 


jielHltr 
FIFTEENTH CONGRESS OF THE 
) 
<!!Iff". of t~.,:lim.turu 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
'10 
NOV 17 P 6 :04 
SENATE 
S. No. 2598 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
AN ACT 
EXEMPTING ALL MANUFACTURERS AND IMPORTERS OF HYBRID VEHICLES 
FROM THE PAYMENT OF CERTAIN TAXES AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled. 
1 
SECTION 1. Any provision of existing laws to the country notwithstanding, any person, 
2 
partnership or corporation who is engaged in the business of manufacturing or importing the 
3 
fuel-saving hybrid cars including its parts and components shall be exempt from the payment of 
4 
import duties, customs, tariff duties, excise, value-added and ad valorem in respect to the 
5 
manufacture or importation of such cars. 
6 
For purposes of this Act, hybrid vehicles shall refer to vehicles that combine the 
7 
technologies used in a gasoline-powered internal combustion (IC) engine with a battery-powered 
8 
electric motor to gain the advantages of both propulsion systems. 
9 
, 
10 
SEC. 2. For proper implementation of this Act, an Inter-Agency Council, hereinafter 
11 
referred to as the Council, is hereby created which shall be responsible to regulate and control 
12 
the grant of tax exemptions to the manufacturers or importers of hybrid vehicles in accordance 
13 
with the conditions to be set forth and the regulations to be promulgated by the Council. 
14 
The Council shall be composed of the following officials or their representatives: 
15 
a) Secretary of Finance - Chairman; 
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b) Secretary of Energy - Member; 
17 
c) Secretary of Science and Technology - Member; 
1 


1 
d) Secretary of Trade and Industry - Member; 
2 
e) Commissioner of Customs - Member. 
3 
4 
SEC. 3. The Grant of Tax exemptions provided in Section I shall be subject to periodic 
5 
review by the Council every five (5) years from the effectivity of this Act and the corresponding 
6 
report shall be submitted to the Congress. 
7 
8 
SEC. 4. The Inter-Agency Council shall promulgate the necessary rules and regulations 
, 
9 
for the effective implementation of this Act. 
10 
11 
SEC. 5. Any laws, presidential decrees, executive orders and letters of instruction which 
12 
are inconsistent with any of the provisions of this Act are hereby repealed or amended 
13 
accordingly. 
14 
15 
SEC. 6. This Act shall take effect fifteen days following its publication in the Official 
16 
Gazette or in any two newspapers of general circulation. 
Approved, 
2