EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
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S E N A T E
Senate Bill No. 
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*19 JUL 16 All --44
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Introduced by Senator Juan Miguel F. Zubiri
AN ACT
PROVIDING INCENTIVES FOR THE MANUFACTURE, ASSEMBLY, 
CONVERSION AND IMPORTATION OF GREEN VEHICLES, AND FOR
OTHER PURPOSES
EXPLANATORY NOTE
Over the years, the Philippines has seen a steady increase in its 
population, with an average annual population growth rate of 1.72 percent 
during the period 2010 to 2015, and an average annual population growth rate 
of 1.90 percent during the period 2000 to 2010. As of August 2015, the 
population of the Philippines was at 100,981,437, a figure 8.64 million higher 
compared to that in 2010, which was at 92.34 million.1
With the increase in population, the country is also witnessing an increase 
in mobility demand, with an average vehicle registration growth rate of 7.5 
percent for the period 2000 to 2008.1 2 Data from the Land Transportation Office 
(LTO) shows that by the year 2015, a total of 8,706,607 motor vehicles were 
registered nationwide, a figure 7.74 percent higher than the 8,081,224 motor 
vehicles registered in 2014.3 The most recent data from LTO shows an even 
higher number of 11,595,434 motor vehicles registered in 2018.
While traffic congestion and economic loss seem to be the most 
unpleasant effects of this phenomenon, environmental stress or the negative 
impacts it has to the environment, cannot be discounted.
The Department of Environment and Natural Resources classifies the 
sources of air pollution and breaks it down into three categories, namely, 
stationary, mobile and area sources. Interestingly enough, based on the 
Department's National Emissions Inventory conducted in 2012, 69 percent of air 
pollutants were from mobile sources such as cars, motorcycles, trucks and buses. 
Only 9 percent came from stationary sources such as power plants and factories.
1 "Highlights of the Philippine Population 2015 Census of Population," 
https://psa.gov.ph/content/highlights-philippine-population-2015-census-population.
2 "The Project for Capacity Development on Transportation Planning and Database Management 
in the Republic of the Philippines," December 2015, 
http://openjicareport.jica.go.jp/pdf/12247656_01.pdf.
3 "Annual Reports," http://wwrw.lto.gov.ph/transparency-seal/annual-reports.html.


and 22 percent from area sources, such as construction activities, open burning 
of solid wastes, and kaingin or swidden farming.4
The Philippine government has taken steps in curbing this problem. The 
Department of Transportation, in partnership with the Department of Public 
Works and Highways and other key government agencies, has launched the 
"Build, Build, Build" program, which is distinguished to be the biggest 
infrastructure program in the Philippines, and includes the development and 
construction of mass urban transport systems.
Furthermore, laws such as Republic Act No. 8754 or the Philippine Clean 
Air Act of 1999 are already in place, providing for the policy framework for the 
country's air quality management program.
In May 2011, the Department of Transportation and Communication also 
launched the National Environmentally Sustainable Transport (EST) Strategy 
which aims to: 1) reduce the annual growth rate of energy consumption and 
associated green house gas (GHG) and air pollutant emissions from the transport 
sector in urban areas of the country; and 2) enhance sustainable mobility 
through the development of a viable market for environmentally sustainable 
transport (EST) goods and services, which includes promoting transportation 
systems of low carbon intensity and shifting towards the use of more sustainable 
transport modes.
This bill supports the aforementioned programs of the government by 
providing incentives for the manufacture, assembly, conversion and importation 
of green vehicles. Through this, we hope to encourage the use of this type of 
vehicle, with the end in view of promoting better air quality and providing 
solutions to the problem of global warming.
In view of the foregoing, early passage of this bill is earnestly sought.
a N MIGUEL F. ZUBIRI
A Air Quality in the Phiiippines (2008-2015), Department of Environment and Natural Resources.


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
S E N A T E
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*19 JUL 16 All -.45
Senate Bill No.
■R rcE i’;:.D  :.v
Introduced by Senator Juan Miguel F. Zubiri
AN ACT
PROVIDING INCENTIVES FOR THE MANUFACTURE, ASSEMBLY, 
CONVERSION AND IMPORTATION OF GREEN VEHICLES, AND FOR
OTHER PURPOSES
Be it enacted by the Senate and the House o f Representatives o f the Philippines 
in Congress assembled:
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SECTION 1. Title. — This Act shall be known as the ''Green Vehicles
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Incentives Act."
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SEC. 2. Declaration o f Policy. -  It is the policy of the State to
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safeguard life and environment by encouraging the use of clean energy sources
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for vehicles intended for public and private use. To protect the well-being and
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promote the economic condition of the people as well as to promote energy
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independence and security in the midst of development and innovation in
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technology, the following are hereby declared:
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a) It is the policy of the State to protect and advance the right of the
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people to a balanced and healthful ecology in accord with the rhythm
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and harmony in nature. The State shall recognize and address the
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detrimental effects on the environment, safeguard the welfare, and
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protect the health of the people by improving air quality and by
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reducing the impact of greenhouse gas effects emitted from man-
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made sources such as vehicles operating on fossil fuels.
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b) The State supports the need to promote the development of new
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technology to accelerate social 
progress and 
promote 
human
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development. The use of eco-friendly or green vehicles intended for
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public and private use is encouraged to promote innovation, energy


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mean:
efficiency, security and conservation, and to speed up the deployment 
of cleaner technology.
c) The State recognizes the indispensable role of the private sector, 
encourages private enterprise, and provides incentives to needed 
investments. 
To 
accelerate 
economic 
growth 
and 
generate 
employment, the State shall provide incentives to private enterprises 
and individuals engaged in the manufacture, assembly, conversion, 
and importation of electric, hybrid and other green vehicles.
SEC. 3. Definition o f Terms. -  As used herein, the following shall
a) Green Vehicle shall refer to a vehicle that is considered to be 
environmentally friendly and have less of a damaging impact on the 
environment than conventional cars; it uses clean energy sources to 
fuel its engine, such as but not limited to: electric vehicle, hybrid 
vehicle, solar, wind, hydrogen fuel cell, compressed natural gas (CNG) 
or liquefied natural gas (LNG), methane and liquefied petroleum gas 
(LPG), other than conventional sources of energy like petroleum and 
gasoline for propulsion.
b) Electric Vehicle (EV) shall refer to any vehicle that uses electric motors 
solely for propulsion.
c) 
Hybrid Vehicle (HV) shall refer to any vehicle that combines the 
technologies of using internal combustion engine (ICE) with a battery- 
powered electric motor to gain advantages of both propulsion 
systems.
d) Manufacturer or Assembler shall mean any individual, partnership, 
corporation or other entity engaged in the manufacture, assembly and 
conversion of electric, hybrid and other green vehicles incorporated, 
organized and existing under Philippine laws.
e) Importer shall mean any individual, partnership, corporation or other 
entity engaged in the importation of completely built units (CBUs) of 
electric, hybrid and other green vehicles incorporated, organized and 
existing under Philippine laws.


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SEC. 4. Coverage. -  This Act shall cover electric, hybrid and other green 
vehicles but shall not include vehicles powered by gasoline, petroleum, bio-diesel 
and bio-ethanol.
SEC. 5. Incentives to Manufacturers or Assemblers. -  The provision 
of any special or general law to the contrary notwithstanding, the manufacture 
or assembly of completely knocked-down (CKD) parts of electric, hybrid and 
other green vehicles, including the conversion of vehicles into electric, hybrid and 
other green vehicles, shall be exempt from the payment of excise taxes and 
duties for nine (9) years from the effectivity of this Act.
SEC. 6. Incentives to Importers. — The provision of any special or 
general law to the contrary notwithstanding, the importation of completely built 
units (CBUs) of electric, hybrid and other green vehicles shall be exempt from 
the payment of excise taxes and duties for nine (9) years from the effectivity of 
this Act.
SEC. 7. Exemption from  the Payment o f M otor Vehicle User's 
Charge (MVUC). — Electric, hybrid and other green vehicles shall be exempt 
from the payment of the Motor Vehicle User's Charge (MVUC) imposed by the 
Land Transportation Office (LTO) under Republic Act No. 8794, otherwise known 
as "Motor Vehicle User's Charge (MVUC) Act" for nine (9) years from the 
effectivity of this Act.
SEC. 8. Non-Fiscal Incentives. -
1) Priority in Registration and Issuance o f Plate Number. -  Registration 
and renewal of registration of electric, hybrid and other green vehicles 
shall be prioritized by the LTO for nine (9) years from the effectivity of 
this Act. A special type of vehicle plate to be prescribed by the LTO 
shall be exclusively issued to all electric, hybrid and other green 
vehicles upon registration.
2) Priority in Franchise Application. -  Public Utility Vehicle (PUV) 
operators exclusively utilizing electric, hybrid and other green vehicles 
shall be granted priority by the Land Transportation Franchising and 
Regulatory Board (LTFRB) in the approval of applications for franchise


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to operate, including its renewal, for nine (9) years from the effectivity 
of this Act.
3) Exemption from Unified Vehicular Volume Reduction Program (UWRP) 
or Number-Coding Scheme. -  All electric, hybrid and other green 
vehicles shall, for nine (9) years from the effectivity of this Act, be 
exempted from the mandatory Unified Vehicular Volume Reduction 
Program (UWRP) or Number-Coding Scheme being implemented by 
the Metro Manila Development Authority (MMDA) and other local 
government units (LGUs) concerned.
4) Provision for Free Parking Spaces in New Establishments. -  Business 
and commercial establishments to be constructed after the effectivity 
of this Act are mandated to provide exclusive parking spaces free of 
charge for all electric, hybrid and other green vehicles. No building 
permit shall be issued for the construction of business and commercial 
establishments that include parking spaces unless the owner submits 
an affidavit that there shall be free parking spaces to be exclusively 
designated for electric, hybrid and other green vehicles, for nine (9) 
years from the effectivity of this Act.
SEC. 9. Registration, Im plem entation and Monitoring. - The
Department of Finance (DOF) and Department of Trade and Industry (DTI) shall 
be responsible for the administration and implementation of the incentives 
granted under this Act.
Manufacturers, assemblers, converters and importers of electric, hybrid 
and other green vehicles shall register with the DOF in order to avail of the 
incentives provided under this Act. For proper monitoring, the DOF and the DTI 
shall meet regularly to monitor and review the implementation of the incentives 
provided herein.
SEC. 10. Im plem enting Rules and Regulations. -  The Department of 
Finance (DOF) in coordination with the Department of Trade and Industry (DTI) 
shall 
promulgate the necessary rules and 
regulations for the effective 
implementation of this Act.


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SEC. 11. Separability Clause. -  If any provision of this Act is declared 
unconstitutional or invalid, other parts or provisions hereof not affected thereby 
shall continue to be in full force and effect.
SEC. 12. Repeating Clause. — All other laws, orders, issuances, 
circulars, rules and regulations or parts thereof, which are inconsistent with the 
provisions of this Act are hereby repealed or modified accordingly.
SEC. 13. Effectivity Clause. - This Act shall take effect fifteen (15) days 
following its publication in at least two (2) newspapers of general circulation.
Approved,