FIFTEENTH CONGRESS OF THE 
) 
'11 
liAY 31 
['5 :26 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
COMMITTEE REPORT NO. 44 
Submitted .Jointly by the Committ~~RPI1 Wa'/..s and Means, on Trade and Commerce, 
and on Climate Change on 
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Recommending its approval in substitution of Senate Bill Nos.1445, 2460, 2598 and 
2798. 
Sponsor: 
Senator Ralph G. Recto 
MR. PRESIDENT: 
The Committees on Ways and Means, on Trade and Commerce, and on Climate 
Change, to which were referred S.B. No. 1445, 
introduced by Senator Zubiri, entitled: 
"AN ACT 
PROVIDING INCENTIVES TO THE MANUFACTURE, SALE AND 
IMPORTATION 
OF 
HYBRID 
VEHICLES 
AND 
FOR 
OTHER 
PUFtPOSES", 
Senate Bill No. 2460, introduced by Senator Defensor Santiago, entitled: 
"AN ACT 
TO 
ESTABLISH 
A 
SYSTEM 
OF 
TAX 
INCENTIVES 
FOR 
INDIVIDUALS AND CORPORATIONS THAT ENGAGE IN THE 
RESEARCH, DEVELOPMENT AND PRODUCTION OF ELECTRONIC 
PUBLIC TRANSPORT VEHICLES", 
Senate Bill No. 2598, introduced by Senator Trillanes IV, entitled: 
"AN ACT 
EXEMPTING 
ALL 
MANUFACTUREFtS AND 
IMPORTERS 
OF 
HYBFtID VEHICLES FROM THE PAYMENT OF CERTAIN TAXES 
AND FOR OTHER PURPOSES", 


and Senate Bill No. 2798, introduced by Senator Defensor-Santiago, entitled: 
"AN ACT 
EXEMPTING 
ALL 
MANUFACTURERS 
AND 
IMPORTERS 
OF 
HYBRID VEHICLES FROM THE PAYMENT OF CERTAIN TAXES" 
have considered the same and have the honor to report the bills back to the Senate 
with the rec:ommendation that the attached bill, Senate Bill No. 2 8 5 S prepared 
by the Committees, entitled: 
"AN ACT 
PROVIDING INCENTIVES FOR THE MANUFACTURE, ASSEMBLY, 
CONVERSION AND IMPORTATION OF ELECTRIC, HYBRID AND 
OTHER ALTERNATIVE FUEL VEHICLES, AND FOR OTHER 
PUHPOSES" 
be approved in substitution of Senate Bill Nos. 1445, 2460, 2598 and 2798 with 
Senators Zubiri, Defensor Santiago, Trillanes IV and Rec:to as authors thereof 
-------
-
-~----.-----
MANNY VILLAR 
------
. 
~REN 
B. LEGARDA 
. 
Chairman 
Committee on Trade and Commerce 
Member, Committee on Ways & Means 
Member, Committee on Climate Change 
( 
hairman 
ittee on Ways & Means 
Chairman 
Committee on Climate Change 
Member, Committee on Trade & Commerce 


Members: 
-
~NGILINAN 
Member, C 
mittee on Ways & Means 
Member, COTmittee of Climate Change 
M~ 
A~v 
SERGIO R. O,iM"ENA III 
Member, 
ommittee on Ways & M ns 
EDGARDO J. ANGARA 
Member, Committee on Ways & Means 
Member, Committee on Trade & Commerce 
Member, Committee on Climate Change 
~(GUINGONA III 
ommittee on Ways & Means 
FRANCIS "Chiz" G. ESCUDERO 
~'I1t'!!JItto; & Means 
"Lito" M. LAPID 
Member, Committee on Vif:Js & Means 
~}~~~LLANES 
IV 
Member, Committee on Ways & Means 
, 
~ 
~f.;,' , 
• 
~ 
\ 
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~,V\ 
R~' Le' /) 
MIRIAM DEF 
SOR SAN~AGO 
Member, Committee on Ways & Means 
Member, Committee on Trade & Commerce 
J~~RROYO 
PlitAvE1 
0 
. ~ 
vlll(,r~ 
Member, Committee on Ways & Means 
Member, Co 
ittee on Ways & Means 
Member, Committee on Trade & Commerce 
Member, Committee on Trade & Commerce 
FERDINAND ~os, 
JR. 
Member, Committe?jon Trade & Commerce 
Member, Committ,re on Climate Change 


Ex Officio Member : 
Y EJERCITO ESTRADA 
~C. 
'dent Pro-Tempore 
Majority 
ALAN PETER "Companero" S. CAYETANO 
Minority Leader 
HON. JUAN PONCE ENRILE 
President 
Senate of the Philippines 
Pasay City 
File:Recto/SubBiIIs-CR/CR-Hybrid 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
'11 
MlIY 31 
P5 :26 
Rf" '''~Il Hy.A~ 
S. No. 2856''- :,,1 
r-=-
(In substitution of S. Nos. 1445, 2460, 2598 and 2798) 
Prepared by the Committees on Ways and Means. on Trade and Commerce, and on 
Climate Change with Senators Zubiri, Defensor-Santiago, Trillanes IV and Recto as 
authors themof 
AN ACT 
PROVIDING 
INCENTIVES 
FOR 
THE 
MANUFACTURE, 
ASSEMBLY, 
CONVERSION AND IMPORTATION OF ELECTRIC, HYBRID AND OTHER 
AL TERNAT~VE FUEL VEHICLES, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
1 
SECTION 1. Title. - This Act shall be known as the "Electric, Hybrid and 
2 
Other Alternative Fuel Vehicles Incentives Act of 2011 ". 
3 
SEC. 2. Declaration of Policy. - It is the policy of the State to safeguard life 
4 
and environment by encouraging the use of alternative sources of energy for 
5 
vehicles intended for public and private use. To protect the well-being and promote 
6 
the economic condition of the people as well as to promote energy independence 
7 
and security in the midst of development and innovation in technology, the following 
8 
are hereby declared: 
9 
A) 
It is the policy of the State to protect and advance the right of the 
10 
people to a balanced and healthful ecology in accord with the rhythm and harmony in 
11 
nature. The State shall recognize and address the detrimental effects on the 
12 
environment, safeguard the welfare, and protect the health of the people by 
1 


1 
improving air quality and by reducing the impact of greenhouse has effects emitted 
2 
from man- made sources such as vehicles operating on fossil fuels. 
3 
B) 
The State supports the need to promote the development of new 
4 
technology to accelerate social progress and promote human development. 
The 
5 
use of alternative sources of energy on vehicles intended for public and private use 
6 
is encouragEld to promote innovation, energy efficiency, security and conservation, 
7 
and to speed-up the deployment of cleaner technology. 
8 
C) 
The State recognizes the indispensable role of the private sector, 
9 
encourages private enterprise, and provides incentives to needed investments. To 
10 
accelerate economic growth and generate employment, the state shall provide 
11 
incentives to private enterprises and individuals engaged in the manufacture, 
12 
assembly, conversion, and importation of electric, hybrid and other alternative fuel 
13 
vehicles. 
14 
SEC. 3. Definition of Terms. As used herein, the following shall mean: 
15 
(a) 
Electric Vehicle shall refer to any vehicle that uses electric motors 
16 
solely for propulsion. 
17 
(b) 
Hybrid Vehicle (HV) shall refer to any vehicle that combines the 
18 
technologies of using internal combustion engine (ICE) with a battery-powered 
19 
electric motor to gain advantages of both propulsion systems. 
20 
(c) 
Other Alternative Fuel Vehicle (AFV) shall refer to any vehicle using 
21 
alternative sources of energy such as but not limited to: solar, wind, hydrogen fuel 
22 
cell, compressed natural gas (CNG) or liquefied natural gas (LNG) and liquefied 
23 
petroleum gas (LPG), other than conventional sources of energy like petroleum and 
24 
gasoline for propulsion. 
25 
(d) 
Manufacturer or Assembler shall mean any individual, partnership, 
26 
corporation or other entity engaged in the manufacture, assembly and conversion of 
2 


1 
electric, hybrid and other alternative fuel vehicles incorporated, organized and 
2 
existing under Philippine laws. 
3 
(e) 
Importer shall mean any individual, partnership, corporation or other 
4 
entity engaged in the importation of completely built units (CBUs) of electric, hybrid 
5 
and other alternative fuel vehicles incorporated, organized and existing under 
6 
Philippine laws. 
7 
SEC. 4. 
Coverage. -
This Act shall cover electric, hybrid and other 
8 
alternative fuel vehicles but shall not include vehicles powered by gasoline, 
9 
petroleum, bio-diesel and bio-ethanol. 
10 
SEC. 5. Incentives to Manufacturers or Assemblers. - The provision of any 
11 
special or general law to the contrary notwithstanding, the manufacture or assembly 
12 
of completely knocked-down (CKD) parts of electric, hybrid and other alternative fuel 
13 
vehicles, including the conversion of vehicles into electric, hybrid and other 
14 
alternative fuel vehicles, shall be exempt from the payment of excise taxes and 
15 
duties for nine (9) years from the effectivity of this Act. 
16 
The imposition of the Value Added Tax (VAT) for the purchase and 
17 
importation of raw materials, spare parts, components and capital equipment used in 
18 
the manufacture or assembly of electric, hybrid and other alternative fuel vehicles 
19 
shall be suspended for the next nine (9) years from the effectivity of this Act. 
20 
SEC. 6. Incentives to Importers. -
The proVision of any special or general 
21 
law to the contrary notwithstanding, the importation of completely built units (CBUs) 
22 
of electric, hybrid and other alternative fuel vehicles 
shall be exempt from the 
23 
payment of excise taxes and duties for nine (9) years from the effectivity of this Act. 
24 
SEC. 7. Exemption from the Payment of Motor Vehicle User's Charge 
25 
(MVUC). - Electric, hybrid and other alternative fuel vehicles shall be exempt from 
26 
the payment of the Motor Vehicle User's Charge (MVUC) imposed by the Land 
3 


Transportation Office (L TO) under Republic Act No. 8794, otherwise known as 
2 
"Motor Vehicle User's Charge (MVUC) Act". 
3 
SEC. 8. Non-Fiscal Incentives. -
4 
1. Priority in Registration and Issuance of Plate Number. - Registration and renewal 
5 
of registration of electric, hybrid and other alternative fuel vehicles shall be 
6 
prioritized by the Land Transportation Office. A special type of vehicle plate to be 
7 
prescribed by L TO shall be exclusively issued to all electric, hybrid and other 
8 
alternative fuel vehicles upon registration. 
9 
2. 
Priority in Franchise Application. 
-
Public Utility Vehicle (PUV) operators 
10 
exclusively utilizing electric, hybrid and other alternative fuel vehicles shall be 
11 
granted priority by the Land Transportation Franchising and Regulatory Board 
12 
(L TFRB) in the approval of applications for franchise to operate, including its 
13 
renewal, for nine (9) years from the effectivity of this Act. 
14 
3. Exemption from Unified Vehicular Volume Reduction Program (UVVRP) or 
15 
Number-Coding Scheme. - All electric, hybrid and other alternative fuel vehicles 
16 
shall be exempted from the mandatory Unified Vehicular Volume Reduction 
17 
Program (UVVRP) or Number-Coding Scheme being implemented by the Metro 
18 
Manila Development Authority (MMDA) and other local government units (LGUs) 
19 
concerned. 
20 
4. Provision for Free Parking Spaces in New Establishments. -
Business and 
21 
commercial establishments to be constructed after the effectivity of this Act are 
22 
mandated to provide exclusive parking spaces free of charge for all electric, 
23 
hybrid and other alternative fuel vehicles. No building permit shall be issued for 
24 
the construction of business and commercial establishments that include parking 
25 
spaces unless the owner subrnits an affidavit that there shall be free parking 
4 


spaces to be exclusively designated for electric, hybrid and other alternative fuel 
2 
vehicles. 
3 
SEC. 9. Registration, Implementation and Monitoring. -
The Department of 
4 
Finance (DOF) and Department of Trade and Industry (DTI) shall be responsible for 
5 
the administration and implementation of the incentives granted under this Act. 
6 
Manufacturers, assemblers, converters and importers of electric, hybrid and 
7 
other alternative fuel vehicles shall register with DOF in order to avail of the 
8 
incentives provided under this Act. For proper monitoring, DOF and DTI shall meet 
9 
regularly to monitor and review the implementation of the incentives provided herein. 
10 
SEC. 
10. Implementing Rules and Regulations. 
-
The Department of 
11 
Finance (DOF) in coordination with the Department of Trade and Industry (DTI) shall 
12 
promUlgate the necessary rules and regulations for the effective implementation of 
13 
this Act. 
14 
SEC. 
11. Separability Clause. -
If any provision of this Act is declared 
15 
unconstitutional or invalid, other parts or provisions hereof not affected thereby shall 
16 
continue to be in full force and effect. 
17 
SEC. 12. Repealing Clause. -
All other laws, orders, issuances, circulars, 
18 
rules and regulations or parts thereof, which are inconsistent with the provisions of 
19 
this Act are hereby repealed or modified accordingly. 
20 
SEC. 13. Effectivity Clause. - The Act shall take effect after fifteen (15) days 
21 
following its publication in at least two (2) newspapers of general circulation. 
Approved, 
5