EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
SENATE 
S. No. 4 7 9
i; ., 
i i :
o' It:, . 
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*19 JUL 15 A1C:43
RECElv lD t  ‘
Introduced by Senator Ralph G. Recto
AN ACT
EXEMPTING 
THE 
MANUFACTURE, 
ASSEMBLY, 
CONVERSION 
AND 
IMPORTATION OF PLUG-IN HYBRID ELECTRIC VEHICLES FROM THE 
PAYMENT OF EXCISE TAXES AND DUTIES, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Natural disasters and their high costs have driven people to seek for 
urban mobility solutions that address climate and environmental issues.
By choosing to use clean transportation options that reduce the 
environmental impact of our mobility, consumers can play an active role in the 
energy transition. But the consumer is not alone in taking this route because the 
government must be in the forefront in its commitment to green mobility.1
Albeit late, the government should start protecting the consumers, the 
climate, and our environment from the growing costs and risks of our fossil fuel use.
As the title of the measure suggests, this bill seeks to exempt the 
manufacture, assembly, conversion and importation of plug-in hybrid electric 
vehicles (PHEVs) from the payment of excise taxes and duties. A PHEV which is an 1
1 Green mobility is sustainable transportation that allows the basic access needs of individuals and 
societies to be met safely and in a manner consistent with human and eco-system health, and with 
equity within and between generations. It limits emissions and waste within the planet's ability to 
absorb them, minimizes consumption of non-renewable resources, limits consumption of renewable 
resources to the sustainable yield level, reuses and recycles its components, and minimizes the 
use of land and the production of noise." (International Journal of Innovative Research in Science, 
Engineering and Technology, Vol. 4, Issue 8, August 2015)


evolution of electric vehicles makes a more attractive alternative to consumers due 
to its lower fuel consumption, lower operating cost, elimination of range anxiety2 and 
lower carbon footprint. Moreover, current global sales figures as well as planned 
releases show that PHEVs shall have a dominant share at 70% in the sales of 
electric vehicles by 2030.3
The bill's primary objective is to help expand the use of this sunrise 
industry and generate economic growth while promoting environmental protection. 
The use of PHEVs for public and private transport will encourage technology 
innovation, create green jobs, accelerate the deployment of green vehicles, increase 
fuel savings, promote better air quality and provide climate change mitigation.
The bill includes sunset provisions on when the incentives expire. Any 
manufacturer or assembler of PHEVs has nine (9) years to avail of the incentives 
under this bill, thereby allowing the industry enough time to grow and develop, and 
become the leading type of vehicle in the market.
The passage of this bill supports the Fueling Sustainable Transport 
Program (FSTP) of the Department of Energy (DOE), which is an initiative on 
diversifying fuels for transport use in the Philippines. The program seeks to convert 
public and private vehicles from diesel and gasoline to low- and zero-emission 
vehicles to address the impact of increasing fuel prices and reduce carbon footprint 
on the transport sector.4 Retrofitting the rest of the public utility vehicles (PUVs) like 
jeepneys and buses can have a tremendous impact on clean environment.
2 Range anxiety is the fear that a vehicle has insufficient range to reach its destination and would thus 
strand the vehicle's occupants. The term, which is primarily used in reference to battery electric 
vehicles, is considered to be one of the major barriers to large scale adoption of all-electric cars.
3 Global EV Outlook 2019.
https://webstore.iea.orq/download/direct/2807?fileName=Global EV Outlook 2019.pdf (Accessed 
July 2, 2019)
4 "Fueling sustainable transport program to mitigate fuel price Increases in the future." 
http://www.qov.ph/2011/04/06/fuelina-sustainable-transDort-Droqram-to-mitiaate-fuel-Drice- 
increases-in-the-future/ (Accessed on June 4, 2013)


If the manufacturers can avail of the fiscal incentives to bring down their 
input costs, they can offer more competitive price for plug-in hybrid electric vehicles 
as compared to their existing gasoline-fed counterparts.
In view of the foregoing, immediate approval of this bill is earnestly
sought.
/m jm a


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S. No. ^  * 1 1 ^
' (Rffiir of t::r 
. • -n*
*19 JUL 15 A10-.43
i:;;::.. • j .
SI
Introduced by Senator Ralph G. Recto
AN ACT
EXEMPTING THE MANUFACTURE, ASSEMBLY, CONVERSION AND 
IMPORTATION OF PLUG-IN HYBRID ELECTRIC VEHICLES FROM THE 
PAYMENT OF EXCISE TAXES AND DUTIES, AND FOR OTHER 
PURPOSES
Be it enacted by the Senate and House o f Representatives o f the Philippines 
in Congress assembled:
1 
Section 1. Short Title. -  This Act shall be known as the "Plug-In Hybrid
2 
Electric Vehicles Incentives Act".
3 
Sec. 2. Declaration of Policy. -  It is the policy of the State to safeguard
4 
life and environment by encouraging the use of clean energy sources for
5 
vehicles intended for public and private use. To protect the well-being and
6 
promote the economic condition of the people as well as to promote energy
7 
independence and security in the midst of development and innovation in
8 
technology, the following are hereby declared:
9 
a) The State shall recognize and address the detrimental effects on the
10 
environment, safeguard the welfare and protect the health of the people by
11 
improving air quality and by reducing the impact of greenhouse gas effects
12 
emitted from man-made sources such as vehicles operating on fossil fuels.
13 
b) The State supports the need to promote the development of new
14 
technology to accelerate social progress and promote human development.
15 
The use of eco-friendly or green vehicles intended for public and private use
16 
is encouraged to promote innovation, energy efficiency, security and
17 
conservation, and to speed-up the deployment of cleaner technology.


1 
c) The State recognizes the indispensable role of the private sector,
2 
encourages 
private 
enterprise, 
and 
provides 
incentives 
to 
needed
3 
investments. To accelerate economic growth and generate employment while
4 
upholding environmental protection, the state shall provide incentives to
5 
private enterprises and individuals engaged in the manufacture, assembly,
6 
conversion, and importation of plug-in hybrid electric vehicles.
7 
Sec. 3. Definition o f Terms. -  As used herein, the following shall mean:
8 
(a) Plug-In Hybrid Electric Vehicle (PHEVs) shall refer to an electrical
9 
vehicle that uses rechargeable batteries, or another energy storage device,
10 
that can be recharged by plugging it to an external source of electric power;
11 
its drive system consists of an efficient combustion engine and a powerful
12 
electric motor; it is able to cover short and medium distances using pure
13 
electric power with a minimum range of 30 kilometers, as certified by the
14 
manufacturer in its country of origin and achieved with the innovative
15 
combination of electric motor, lithium-ion battery and intelligent energy
16 
management.
17 
(b) Manufacturer or Assembler shd\\ mean any individual, partnership,
18 
corporation or other entity engaged in the manufacture, assembly and
19 
conversion of PHEVs and incorporated or organized and existing under
20 
Philippine laws.
21 
(c) Im porter shall mean any individual, partnership, corporation or
22 
other entity engaged in the importation of completely built units (CBUs) of
23 
PHEVs incorporated or organized and existing under Philippine laws.
24 
Sec. 4. Incentives to Manufacturers, Assemblers or Importers. -  The
25 
provision of any special or general law to the contrary notwithstanding, the
26 
manufacture or assembly of completely knocked-down (CKD) parts of PHEVs
27 
as well as the importation of completely built units (CBUs) of the same, shall
28 
be exempt from the payment of excise taxes and duties for nine (9) years
29 
from the effectivity of this Act.
30 
Sec. 
5. 
Registration, 
Implementation 
and Monitoring. 
-  
The
31 
Department of Finance (DOF) shall be responsible for the administration and
32 
implementation of the incentives granted under this Act.


1 
Manufacturers, assemblers, converters and importers of PHEVs shall
2 
register with DOF in order to avail of the incentives provided under this Act.
3 
For proper monitoring, 
DOF shall 
regularly monitor and 
review the
4 
implementation of the incentives provided herein.
5 
Sec. 
6. 
Implementing Rules and Regulations. -  The DOF, 
in
6 
consultation with the Department of Transportation, shall within sixty (60)
7 
days from the effectivity of this Act, formulate the rules and regulations to
8 
effectively implement the provisions of this Act.
9 
Sec. 7. Separability Clause. -  If any portion or provision of this Act is
10 
declared unconstitutional, the remainder of this Act or any provisions not
11 
affected thereby shall remain in force and effect.
12 
Sec. 8. Repealing Clause. -  Any law, presidential decree or issuance,
13 
executive order, letter of instruction, rule or regulation inconsistent with the
14 
provisions of this Act is hereby repealed or modified accordingly.
15 
Sec. 9. Effectivity Clause. - This Act shall take effect fifteen (15) days
16 
following its complete publication in two (2) newspapers of general circulation
17 
or in the Official Gazette.
Approved,