FIFTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES
H.No. 3526

Introduced by Representative Teodorico T. Haresco Jr.

EXPLANATORY NOTE

Article Il, Section 16 of the 1987 Philippine Constitution mandates that “the
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.”

Article XIV, Section 12 of the Philippine Constitution also provides that,
“Congress may provide for incentives, including tax deductions, to encourage private
Participation in programs of basic and applied scientific research.”

The Philippines is a climate hotspot and is vulnerable to some of the worst
manifestations of climate change. Climate change, which refers to any significant
change in measure of climate (such as temperature, precipitation, or wind) lasting for
an extended period (decades or longer), may perhaps be the gravest issue
confronting the world right now. As an archipelago and a biodiversity hotspot, the
Philippines is faced with the huge challenge of protecting our environment and our
people from the worst manifestations of climate change.

In 2000, Southeast Asia contributed 12 percent to the world’s total Greenhouse
Gas (GHG) emission. Indonesia was recorded to have produced 59 percent of—the
highest in—the entire region’s GHG emission; followed by Thailand with six percent;
the Philippines with four percent and Vieinam with two percent. Today, even if we
completely stop emitting GHG, the effects of global warming will not be prevented.


According to the Asian Development Bank (ADB), the Philippines is one of four
Southeast Asian countries likely to experience wider economic contraction of six
percent by 2100 because of environmenial risks. ADB further inferred that this
environmental phenomenon would shave off $230 billion from, or 6.7 percent of, the
tegion’s gross domestic product (GDP). Furthermore, the economic backslide of
climate change is worse for these four Southeast Asian states (Philippines, Thailand,
Indonesia and Vietnam) because they have dense population in coastal areas, they
are agriculture-driven, and they have a frail adaptation backbone.

For these aforementioned reasons, the government must come up with
measures to make the green movement a mainstream effort. The United Nations (UN)
is promoting the use of cleaner technologies which are more environment-friendly and
energy efficient. Innovations such as electronic vehicles or e-vehicles should be
encouraged because it will significantly lessen air pollution. E-vehicles, unlike regular
automobiles which are the major source of GHG, emit no tailpipe carbon dioxide or
other pollutants.

This Bill seeks to foster a “green society” by promoting the use of e-vehicles
through the exemption of these electronic automobiles from the payment of road
user's tax.

Ant: |
HON. TEODORICO T. ‘0 JR.
Representative


FIFTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES
H.No.__3526

Introduced by Representative Teodorico T. Haresco Jr.

AN ACT
EXEMPTING USERS OF ELECTRONIC VEHICLES
FROM THE PAYMENT OF THE ROAD USER'S TAX

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

SECTION 1. Short Title. - This Act shall be known as the “E-Vehicle Road User's Tax
Exemption Act of 2010."

SECTION 2. Declaration of Policy. -It is the policy of the State to afford full protection
and the advancement of the right of the people to a healthful ecology in accord with
the rhythm and harmony of nature. In this light, the State has adopted the Philippine
Agenda 21 framework which espouses sustainable development, to fulfill human
needs while maintaining the quality of the natural environment for current and future
generations.

As a party to the United Nations Framework Convention on Climate Change,
the State adopts the ultimate objective of the Convention which is the stabilization of
greenhouse gas concentrations in the atmosphere at a level that would prevent
dangerous anthropogenic interference with the climate system which should be
achieved within a time frame sufficient to allow ecosystems to adapt naturally to
climate change, to ensure that food production is not threatened and to enable
economic development to proceed in a sustainable manner.

The Motor Vehicles User's Tax, as mandated by Republic Act 8794, replaced
the motor vehicles’ registration fee since it was imposed in 2000. Section 7 of the law
provides that monies collected from the road user's tax can be earmarked solely and
used exclusively (1) for road maintenance and the improved of the road drainage, (2)


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for the installation of adequate and efficient traffic lights and road safety devices, and
(3) for the air pollution control.
SECTION 3. Definition of Terms. - As used in this Act, the following terms shall mean:

(a) E-vehicle - or electronic vehicle shall refer to any vehicle that uses electric
motors for propulsion: this does not include motor vehicles propelled by gasoline or
diesel engines or hybrid motor vehicles that are powered by more than one power
source

(b) Emission - means any air contaminant, pollutant, gas stream or unwanted
sound from a known source which is passed into the atmosphere
SECTION 4. Tax exemption. - Electric vehicles shall be exempted from the payment
of the road user's tax .
SECTION 5. Separability Clause. - If any provision, or part hereof is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall
remain valid and subsisting.
SECTION 6. Repealing Clause. - Any law, presidential decree or issuance, executive
order, letter of instruction, administrative order, rule or regulation contrary to or
inconsistent with, the provisions of this Act is hereby repealed, modified, or amended
accordingly.
SECTION 7. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved,