SEVENTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
)
Second Regular Session 
)
S E N A T E  
S.B. No. 
1 5 2 4
'mire of t!ir 
i 1 tpr]'
■17 JUL26 P6:05
RECtlV'Lu li,';____
In tro d u ce d  by Sen. Juan M iguel 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 2008.2 Data from the Land Transportation Office 
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
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, 
and 22 percent from area sources, such as construction activities, open burning 
of solid wastes, and kaingin or swidden farming.4
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://www.lto.gov.ph/transparency-seal/annual-reports.html.
4 Air Quality in the Philippines (2008-2015), Department of Environment and Natural Resources.


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.
JUAN MIGUEL F. ZU BIR I


SEVENTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
)
Second Regular Session 
)
S E N A T E  
S.B. No. 
1 5 2 4
hr t'- ! -t.M'J*
*17 JUL26 P 6 -05
R E C L IV I0  l>V,
Introd uced by Sen. Juan M iguel F. Z ubiri
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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Act:
SECTION 1. Title. -  This Act shall be known as the "Green Vehicles Incentives
SEC. 2. D eclaration o f Policy. -  It is the policy of the State to safeguard life 
and environment by encouraging the use of clean energy sources for vehicles intended 
for public and private use. To protect the well-being and promote the economic 
condition of the people as well as to promote energy independence and security in the 
midst of development and innovation in technology, the following are hereby declared:
a) 
It is the policy of the State to protect and advance the right of the 
people to a balanced and healthful ecology in accord with the rhythm and harmony in 
nature. The State shall recognize and address the detrimental effects on the 
environment, safeguard the welfare, and protect the health of the people by improving 
air guality and by reducing the impact of greenhouse gas effects emitted from man­
made sources such as vehicles operating on fossil fuels.
b) 
The State supports the need to promote the development of new 
technology to accelerate social progress and promote human development. The use of 
eco-friendly or green vehicles intended for public and private use is encouraged to 
promote innovation, energy 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. D e fin itio n  o f Terms. -  As used herein, the following shall mean:
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.


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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.
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 M anufacturers o r 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 Im porters. — 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. Exem ption from  the Paym ent 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. 7. Separability Clause. - If any provision or part hereof, is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall 
remain valid and subsisting.
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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 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


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Vehicular Volume Reduction Program (UVVRP) or Number-Coding Scheme being 
implemented by the Metro Manila Development Authority (MMDA) and other local 
government units (LCDs) 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 
effectively of this Act.
SEC. 9. Registration, Im piem entation and M onitoring. - This 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 DOF in order to avail of the incentives provided 
under this Act. For proper monitoring, DOF and 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
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unconstitutional or invalid, other parts or provisions hereof not affected thereby shall
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continue to be in full force and effect.
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SEC. 11. Repealing 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. 9. E ffectivity Clause. - This Act shall take effect fifteen (15) days 
following its publication in at least two (2) newspapers of general circulation.
Approved,
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