RECEIVED

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress

First Regular Session

House Bill No, 1004

REGISTRATION UNIT
BILLS AND INDEX SERVICE

Introduced by Honorable Luis Jose Angel N. Campos, Jr.

EXPLANATORY NOTE

Scetion 16, Article II of the Philippine Constitution declares that it is the right of the
people to have a balanced and healthful ecology in accord with the rhythm and harmony of
nature, In line with this policy, this bill seeks to take an active step towards the use of modem
technology to reduce our consumption of fossil fuels that contribute to the phenomenon of global
warming by promoting the use of hybrid cars in the Philippines through the grant of favorable
tax measures and giving priority in franchise applications. By affording these incentives to
hybrid car manufacturers, importers, spare parts dealers, the costs of importing, manufacturing
and/or owning hybrid cars is reduced thereby allowing a greater number of Filipinos to
own/utilize vehicles that use alternative and environmental fricndly sources of energy.

In view of the foregoing, the approval of this bill is earnestly sought.

HOUSE OF REPRESENTATIVES


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress

First Regular Session

House Bill No 1004

AN ACT
PROVIDING INCENTIVES FOR THE MANUFACTURE, ASSEMBLY, CONVERSION
AND IMPORTATION OF ELECTRIC, HYBRID AND OTHER ALTERNATIVE FUEL.
VEHICLES AND FOR OTHER PURPOSES.

Be it enacted by the Senate and House of Representatives. of the Philippines. in Congress
assembled:

SECTION 1. TITLE. - This Act shall be known as the “Electric, Hybrid and other
Alternative Fuel Vehicles Incentives Act of 2013,

SEC. 2, DECLARATION OF POLICY. - \t is the policy of the State to safeguard life

and environment by encouraging the use of alternative source of energy for vehicles intended fi
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 t

nology, 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 quality

and reducing the impact of greenhouse gas effect emitted from man-made sources

such as vehicle 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 alternative

sourees of energy on vehicles intended for public and private use is encouraged to

promote innovation, energy efficieney. security and conservation, and to speed up the

deployment of cleaner technology: and

(c) The State recognizes the indispensable role of the private sector, encourage 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 alternative fuel vehicl

es.

SEC, 3. DEFINITION OF TERMS. - As used herein, the following shall mean:

PV) shall

(a) Electric Vehicle ( fer to any vehicle that uses electric motors solely for
propulsion.

sof

(b) Hybrid Vehicle (HV) shall refer to any vehicle that combines the technologi

using internal combustion engine (ICE) with a battery-powered electric motor to

gain advantages of both propulsion systems.

(c) Other Alternative Fuel Vehicle (AFV) shall refer to any vehicle using alternative

sources of energy such as but not limited to: solar, wind, hydrogen fuel cell,

compressed natural gas (CNG) or liquefied natural gas (LNG) and liquefied

petroleum: gas (LPG), other than conventional sources of energy like petroleum and

gasoline for propulsion

(@) Manufacturer or Assembler shall refer to any individual, partnership, corporation or

other entity engaged in the manufacture, assembly and conversion of electric, hybrid
and other alternative fuel vehicles incorporated, organized and existing under

Philippine laws

(e) Importer shall refer to any individual, partnership, corporation or other entity
engaged in the importation of completely built units (CBU’s) of electric, hybrid and
other alternative fuel vehicles incorporated, organized and existing under Philippine
laws.

SEC. 4. Coverage. — This Act shall cover clect

ic, hybrid and other alternative fuel
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 alter

ative fuel vehicles, including the
conversion of vehicles into electric, hybrid and other alternative fuel vehicles, shall be exempt
from the payment of excise taxes and duties for nine (9) years from the effectivity of this Act

The importation of raw materials, spare parts, components and capital equipment used in

hybrid and other alternative fuel vehicl

the manufacture, assembly or conversion of elect

shall be exempted from the payment of valued-added tax (VAT) for nine (9) years from the

effectivity of this Act.

‘The sale of raw materials, spare parts, component and capital equipment used in the

manul

facture or assembly of electric, hybrid and other alternative fuel vehicles, including the

conversion into such vehicles, shall be subject to zero percent (0%) VAT rate for nine (9) years
from the effectivity of this Act.

SEC. 6.

CENTIVE TO IMPORTERS. ~ The provision of any special or general law

to the contrary notwithstanding, the importation of CBU’s of electric, hybrid and other


alternative fuel vehicles shall be exempt from the payment of excise taxes and duties for nine (9)
years from the effectivity of this Act.

7. EXEMPTION FROM THE PAYMENT OF MOTOR VEHICLE USER’:

CHARGE (MVUCQ). ~ Electric, hybrid and other alternative fuel vehicles shall be exempt from

the payment of the MVUC imposed by the Land

Asportation Office (LTO) uw

Jer Republic
Act No. 8794, otherwise known as “Motor Vehicle User's Char

PISCAL INCE!

¢ (MVUC) Act”.

SEC. 8 -NON-

TIVES PRIORITY IN FRANCHISE

APPLICATION. ~ Public Utility Vehicle (PUV) operators exclusively utilizing electric, hybrid
and other alternative fuel vehicles shall be granted priority by the Land Transportation

Fi

chising and Regulatory Board (LTFRB) in the approval of applications for franchise to

operate, including its renewal, for nine (9) years trom the effectivity of this Act.
SEC. 9 REGISTRATION, IMPLEMENTATION AND MONITORING - The
Department of Finance (DOF) and the Department of Trade and Industry (DTI) shall be

responsible f

the administration and implementation of the incentives granted under this Act.

Manutfact

assemblers, converter and importers of electric, hybrid and other

alternative fuel 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 h

cin,
SEC. 10. Implementing Rules and Regulations. — ‘The DOF, in coordination with the
DTI, shall promulgate the necessary rules and regulations for the effective implementation of this

Act

SEC. 11. SEPARABILITY CLAUSE. - It any provision of this Act is subsequently

declared invalid or unconstitutional, the other provisions hereof which are not affected thereby
shall remain in full force and effect

SEC. 12. REPI

ALING CLAUSE, ~ All laws, acts, presidential decrees, executive

orders, issuances, presidential proclamation, rules and regulations or parts thereof which are
contrary to or inconsistent with any provision of this Act are hereby repealed, amended or
modified accordingly.

SEC. 13. EFFECTIVITY CLAL

— This Act shall take effect fifteen (15) days after

its publication either in the Official Gazette or at least two (2) newspapers of general circulation.

Approved,