REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
‘Second Regular Session

f? ‘RECEIVED
2 MAID
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House Bil No. _ 76°75

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

EXPLANATORY NOTE

Frequent adjustment of oil prices is not new to us. From December 2017 until April 2018, the
price of Diesel increased from only P36.35 to P43.30, or about P7, while RON 97 Gasoline
increased from P49.85 last December 2017 to PS5.25 in April 2018, or about P6, thanks
primarily to the implementation of the TRAIN Law.

‘Admittedly, a lot has to be done to be able to cope with the current problems brought about by
high prices of gasoline. This leads us to the fact that energy-efficiency measures are very much
significant today, given the fluctuating prices of gasoline in the country. Specifically, one
solution to the worsening issue of frequent increase in gasoline prices has come about with the
development of the so called “hybrid cars”.

This bill aims to promote the widespread use of hybrid and vehicles using altemnative fuels in the
country and, thus, lessen our dependence on imported oil.

‘The measure, among others, seeks to:

‘© Protect the environment by mitigating the harmful effects of carbon emissions into the
atmosphere;

© Exempt from the payment of value-added tax for nine years the importation of raw
materials, spare parts, components and capital equipment used in the manufacture or
assembly of electric, hybrid and other alternative fuel vehicles’

‘Include non-fiscal incentives geared mainly for users, including priority in registration
and franchise application for public utility vehicles; exemption from number coding
schemes; and free parking in new buildings.

In view of the foregoing, the immediate passage of this bill is earnestly requested.
~

VAC. ALEJANO.
Representative
Magdalo Para sa Pilipino Party-List


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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

House Bil No. 7875

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANt

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

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

SECTION 1. Short Title. — This Act shall be known as the “Electric, Hybrid and Other
Alternative Fuel Vehicles Incentives Act of 2018.”

SEC. 2. Declaration of Policy. It is the policy of the State to safeguard the life and well-
being of its citizens and the safety of the environment by encouraging the use of altemative
sources of energy for vehicles intended for public and private use. To protect the well-being and
promote the economic advancement 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 promote 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 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 alternative
sources of energy on 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;


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©) The State recognizes the indispensable role of the private sector, encourages private
enterprise, and provides incentives for 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 vehicles.

SEC 3. Definition of Terms. — As used herein, the following shall mean:

a) Electric Vehicle (EV) shall refer to any vehicle that uses electric motors solely for
propulsion;

b) 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;

©) 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;

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 alternative fuel vehicles incorporated, organized and existing under
Philippine laws; and

©) Importer shall mean any individual, partnership, corporation or other entity engaged
in the importation of completely built units (CBUs) of electric, hybrid and other
alternative fuel vehicles incorporated, organized and existing under Philippine laws.

SEC. 4. Coverage. — This Act shall cover electric, hybrid and other alternative fuel
vehicles but shall not include vehicle powered by gasoline, petroleum, bio-diesel and bio-
ethanol.

SEC. 5. Incentives to Manufacturers or Assemblers. The manufacture or assembly of
completely knocked-down (CKD) parts of electric, hybrid and other alternative fuel vehicles,
including the conversion of vehicles into electric, hybrid and other alternative fuel vehicles, shall


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

‘The imposition of the Value Added Tax (VAT) for the purchase and importation of raw
materials, spare parts, components and capital equipment used in the manufacture or assembly of
electric, hybrid and other alternative fuel vehicles shall be suspended for the next nine (9) years
from the effectivity of this Act.

SEC. 6. Incentives to Importers. ~The importation of CBUs 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.

SEC. 7. Exemption from the Payment of Motor Vehicle User’s Charge (MVUC) ~
Electric, hybrid and other alternative fuel 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 after the effectivity to this Act.

SEC. 8. Non-Fiscal Incentives. —

1. Priority in Registration and Issuance of Plate Number. — Registration and renewal
of Registration of electric, hybrid and other alternative fuel vehicles shall be
prioritized by the LTO for nine (9) years after the effectivity of this Act. A special
type of vehicle plate to be prescribed by LTO shall be exclusively issued to all
electric, hybrid and other alternative fuel vehicles upon registration;

2. 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 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 Unifies Vehicular Volume Reduction Program (UVVRP) or
Number Coding Scheme. ~ All electric, hybrid and other alternative fuel vehicles
shall for nine (9) years after the effectivity of this Act, be exempted from the
mandatory UVVRP or number-coding scheme being implemented by the Metro
Manila Development Authority (MMDA) and other local government units (LGUs)
concemed; and


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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 alternative fuel 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 alternative fuel vehicles, for
nine (9) years after 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 for the
administration and implementation of the incentives granted under this Act.

Manufacturers, assemblers, converters and importers of electric, hybrid and other
alternative fuel 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. 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. — \f 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. 12. 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 modifies accordingly.

SEC. 13. Effectivity Clause. — The Act shall take effect fifteen (15) days following its

publication in at least two (2) newspapers of general circulation.

Approved,