FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
1 
/ 
Introduced by Senator JUAN MIGUEL F. ZUBlRl 
EXPLANATORY NOTE 
Almost all of the cars or motor vehicles we drive run on fuels derived from 
petroleum, which is non-renewable. But with the continuing rise of fuel cost and the 
imminent decline of extractable world oil deposit, the demand for alternative 
transportation is expanding. 
Since the 199Os, hybrid cars have become a viable alternative to standard petrol 
or diesel cars. Hybrid vehicles make use of a combination of a small combustion engine 
along with rechargeable energy storage systems while the battery collects electricity to 
power an electric motor. Hybrid vehicles does not only provide better fuel economy that 
result in added savings for consumers but also offer lower greenhouse gasses 
emissions. 
This bill seeks to provide incentives to the manufacture, sale and importation of 
hybrid vehicles which will encourage public support for the hybrid car industry. This is in 
line with the governments' Alternative Fuels Program to reduce our dependence on 
imported oil and to provide cheaper and more environment-friendly alternative to fossil 
fuels. 
In view of the foregoing, immediate passage of this bill is earnestly sought. 


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FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
1 
S. No. 3397 
Y 
Introduced by Senator JUAN MIGUEL F. ZUBlRl 
AN ACT 
PROVIDING INCENTIVES TO THE MANUFACTURE, SALE AND IMPORTATION OF 
HYBRID VEHICLES AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
Section 1. Any provision of existing laws to the country notwithstanding, any 
person, partnership or corporation who is engaged in the business of manufacturing, 
selling or importing the fuel-saving hybrid cars including its parts and components shall 
be exempt from the payment of import duties, customs and tariff duties, excise, value- 
added and ad valorem taxes in respect to the manufacture or importation of such cars. 
For purposes of this Act, hybrid vehicles shall refer to vehicles that combine the 
technologies used in a gasoline-powered internal combustion (IC) engine with a battery- 
powered electric motor to gain the advantages of both propulsion systems. 
Section 2. For proper implementation of this Act, an Inter-Agency Council 
hereinafter referred to as the Council is hereby created which shall be responsible to 
regulate and control the grant of tax 
exemptions to the 
manufacturers, 
sellers/distributors or importers of hybrid vehicles in accordance with the conditions to 
be set forth and the regulations to be promulgated by the council. 
The Council shall be composed of the following officials or their representatives; 
a,) Secretary of Finance - Chairman; 
b.) Secretary of Energy - member; 
c.) Secretary of Science and Technology - member; 
d.) Secretary of Trade and Industry - member; 
e.) Commissioner of Customs - member. 
. 


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Section 3. The Grant of Tax Exemptions provided in Section 1 shall be subject to 
periodic review by the council every five (5) years from the effectivity of this Act and the 
corresponding report shall be submitted to the Congress. 
Section 4. The Inter-Agency Council shall promulgate the necessary rules and 
regulations for the effective implementation of this Act. 
Section 5. All laws, decrees, executive orders, letters of instructions, rules and 
regulations or parts thereof which are inconsistent with this Act are hereby repealed, 
amended or modi@ accordingly. 
Section 6. This Act shall take effect fifteen (15) days following its publications in 
at least two (2) national newspapers of general circulation. 
Approved, 
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