1^?
SEVENTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
SENATE 
S. No. 1 4 2 2
^cuatr
d( tiir E/ c .i ftnrp
*17 HAY-2 Pl:39/
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
Disasters and their high costs have driven people to seek for urban mobility 
solutions that can address climate and environmental issues.
By choosing to use clean transportation options or by reducing 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 also be 
committed 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 evolution of electric 
vehicles makes a more attractive alternative to consumers due to lower fuel consumption, 
lower operating cost, elimination of range anxiety and lower carbon footprint. Moreover, 
current global sales figures as well as planned releases show that PHEVs will be the 
dominant electric vehicle in the near future.2
The bill’s primary objective is to help expand the use of this new sunrise industry 
and generate economic growth. Moreover, 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 solutions to climate change.
Tire 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.
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.”
2 http://www.ev-vQlumes.com/countrv/total-world-plug-in-vehicle-volumes/ (Accessed April 24, 2017)


The passage of this bill supports the Fueling Sustainable Transport Program 
(FSTP) of tTie Department of Energy (DOE), which is an initiative on diversifying fuels 
for transport use in the Philippines. Tlie 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.3 
Retrofitting the rest of public utility vehicles (PUVs) like jeepneys and buses can have a 
tremendous impact on clean environment.
If the manufacturers can avail of the fiscal incentives to bring down their input 
costs, they can offer more competitive price of 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.
iir ■■■ 
ntfma
“Fueling sustainable transport program to mitigate fuel price Increases in the future.” 
http://www.gov.ph/2011/04/06/fueline-sustainable-transDort-program-to-mitieate-fuel-price-increases-in- 
the-future/ (Accessed on June 4, 2013)


V
SEVENTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
SENATE
s. No.
fe r?  
Ornate
A  H - ^ / 7  A
of tlir 
ti rln rp
'17 MAY-2 PI :39
RECEIVLUB,-;
Introduced by Senator Ralph G. Recto
1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
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 of Representatives of the Philippines in Congress 
assembled:
SEC. 1. This Act shall be known as the "Plug-In Hybrid Electric Vehicles 
Ineentives Act of 2017".
SEC. 2. Declaration of Policy. - It is the policy of the State to safeguard life and 
environment by encouraging the use of elean energy sourees 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 deelared:
A) 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 by reducing the impact of greenhouse gas effeets 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 eeo-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 plug-in hybrid electric vehicles.
SEC. 3. Definition of Terms. As used herein, the following shall mean:
(a) 
Plug-In Hybrid Electric Vehicle known as PHEVs shall refer to an electrical 
vehicle that uses rechargeable batteries, or another energy storage device, that can be
Page 1 of 2


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
1
recharged by plugging it to an external source of electric power; its drive system consists 
of an efficient combustion engine and a powerful electric motor; it is able to cover short 
and medium distances using pure electric power with a minimum range of 30 kilometers, 
as certified by the manufacturer in its country of origin and achieved with the innovative 
combination of electric motor, lithium-ion battery and intelligent energy management.
(b) Manufacturer or Assembler shall mean any individual, partnership, 
corporation or other entity engaged in the manufacture, assembly and conversion of 
PHEVs incorporated, organized and existing under Philippine laws.
(c) Importer shall mean any individual, partnership, corporation or other entity 
engaged in the importation of completely built units (CBUs) of PHEVs incorporated, 
organized and existing under Philippine laws.
SEC. 4. Incentives to Manufacturers, Assemblers or Importers. - Tlie provision of 
any special or general law to the contrary notwithstanding, the manufacture or assembly 
of completely knocked-down (CKD) parts of PHEVs as well as the importation of 
completely built units (CBUs) of the same, shall be exempt from the payment of excise 
taxes and duties for nine (9) years from the effectivity of this Act.
SEC. 5. Registration, Implementation and Monitoring. - The Department of 
Finance (DOF) shall be responsible for the administration and implementation of the 
incentives granted under this Act.
Manufacturers, assemblers, converters and importers of PHEVs shall register with 
DOF in order to avail of the incentives provided under this Act. For proper monitoring, 
DOF shall meet regularly to monitor and review the implementation of the incentives 
provided herein.
SEC. 6. Implementing Rules and Regulations. - The Department of Finance 
(DOF) shall within sixty (60) days from the effectivity of this Act, promulgate the 
necessary rules and regulations for the effective implementation of this Act.
SEC. 7. Separability Clause. - If any provision of this Act is declared 
unconstitutional or invalid, other parts or provisions hereof not affected thereby shall 
continue to be in full force and effect.
SEC. 8. 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. Effectivity Clause. - This Act shall take effect fifteen (15) days following 
its publication in at least two (2) newspapers of general circulation or the Official 
Gazette.
Approved,
Page 2 of 2