NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S.B. No. 648
of l!;f '
72 JULU P4 -03
RECEIVtD Bf.
Introduced by SENATOR IMEE R. MARCOS
AN ACT
AMENDING REPUBLIC ACT NO. 11697 OTHERWISE KNOWN AS 
THE "ELECTRIC VEHICLE INDUSTRY DEVELOPMENT ACT,"
AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Article II, Section 15 of the 1987 Constitution provides that, nThe State shall 
protect and promote the right to health of the people "while Section 16 of the same 
Article states that, ’T/?e State shall protect and advance the right of the people to a 
balanced and healthful ecology in accord with the rhythm and harmony of nature."
The Paris Agreement was signed by President Rodrigo Roa Duterte and ratified 
by the Senate last 2017. Set within the United Nations Framework Convention on 
Climate Change (UNFCCC), the Paris Agreement was designed to strengthen the global 
response to the urgent threat of climate change by holding the increase in global 
average temperature below 1! above pre-industrial levels and was signed by 196 
countries. In line with the Paris Agreement, President Duterte approved the country's 
first Nationally Determined Contribution (NDC) last April 2021, which aims to reduce 
greenhouse gas (GHG) emissions by 75% by 2030.
One of the biggest contributois to local carbon dioxide emissions is the local 
transportation sector, which is predominantly powered by oil products. The latest 
government inventory of Philippine greenhouse gas emissions shows the 
transportation sector as the second biggest source of emissions, contributing 31.3% 
of total emissions. The biggest emission contributor Iri the transportation sector is the 
road use transport, which accounts for 88% of transportation emissions.


Adopting hybrids and electric vehicles which run on electric motor instead of the 
traditional internal combustion engine will allow the transportation sector to comply 
with the NDCs of the transport sector. However, the current law to encourage the 
uptake of electric vehicles do not provide enough incentives for the industry.
This proposed measure adds additional Incentives to encourage the uptake of 
hybrid and electric vehicles in the public and private sector in the form of reductions 
in the applicable duty rates and the value added tax on the sale of hybrid and electric 
vehicles.
In view of the foregoing, the immediate passage of this bill is earnestly sought.
IMEE R. MARCOS


NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S.B. No. 648
of lilt .rfrni'U
72 JUL14 P 4 -03
RtCEl.tDB
Introduced by SENATOR IMEE R. MARCOS
AN ACT
AMENDING REPUBLIC ACT NO. 11697 OTHERWISE KNOWN AS 
THE "ELECTRIC VEHICLE INDUSTRY DEVELOPMENT ACT/'
AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines In 
Congress assembled:
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SECTION 1. Section 24 of Republic Act No. 11697 otherwise known as the
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"Electric Vehicle Industry Development Act" shall be amended to read as follows:
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"Section 24. Fiscal Incentives. -
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(a) Manufacturing
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XXX
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(b) Importation
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XXX
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(c) Utilization
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A thirty percent (30%) discount for the BEVs and fifteen percent (15%)
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discount for HEVs from the payment of the motor vehicle user's charge imposed
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by the LTO under Republic Act No. 8794, otherwise known as the "Motor Vehicle
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User's Charge Act/' as well as vehicle registration and inspection fees shall be
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available for eight (8) years from the effectivity of this Act.
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(d) SALE
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THE SALE OF HEVs SHALL BE SUBJECT TO FIFTY PERCENT (50%)
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OF THE APPLICABLE DUTY RATES ON AUTOMOBILES WHILE THE SALE
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OF BEVs SHALL BE EXEMPT FROM DUTY RATE ON AUTOMOBILES.
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PROVIDED THAT, 
FROM THE EFFECTIVITY OF THIS ACT, THE
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SALE OF HEVs AND BEVs SHALL BE SUBJECT TO LOWER VAT RATES
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FOR THE FIRST FIVE YEARS, AS FOLLOWS:
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(i) YEAR 1 - FOUR PERCENT (4%)


(ii) YEAR 2 ~ SIX PERCENT (6%)
(iii) YEAR 3 - EIGHT PERCENT (8%)
(iv) YEAR 4 TO 5 - TEN PERCENT (10%)
PROVIDED FURTHER THAT, AFTER THE FIFTH YEAR, THE VAT 
RATE SHALL BE REINSTITUTED AT TWELVE PERCENT (12%), AS 
PROVIDED IN EXISTING LAWS, RULES, AND REGULATIONS.
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SEC. 2. Repealing Clause. - Ali laws, decrees, orders, rules and regulations or 
other issuances or parts thereof inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly.
SEC. 3. Separability Clause. - If any portion or provision of this Act Is declared 
unconstitutional, the remainder of this Act or any provision not affected thereby shall 
remain in force and effect.
SEC. 4. Effectivity. - This Act shall take effect after fifteen (15) days following 
the completion of its publication either in the Official Gazette or in a newspaper of 
general circulation in the Philippines.
Approved,