Non-tax perks for environment-friendly car users proposed

MANILA, Philippines - The Board of Investments (BOI) said consumers must be given non tax perks like special lanes in EDSA and toll plazas and preferred parking in order to encourage the shift to environment friendly vehicles.

In a letter to the Senate Tax Study-Research Office, BOI executive director Efren V. Lano said that aside from possible reduction in the price of hybrid vehicles, the government can give special benefits like convenient charging stations and special lanes in EDSA, in order to make evehicles more popular.

In order to reduce the price of these vehicles, BOI said the government must give incentives to electric, hybrid and alternative vehicles in order to encourage the public to use more environment friendly cars.

Local car dealers have been pressuring the government to give tax breaks to hybrid vehicles in order to make it more affordable. Toyota Motor Philippines has been selling their Prius here for P2.3 million. Its luxury brand Lexus, also have hybrid models.

Leano said the incentive plan of the government should exclude luxury cars.

“It should only cover electric, hybrid and alternative fuel vehicles that would cater to the mass market,” Leano’s four page letter read.

“If the intent is to encourage their use, the majority of public should be able to purchase these vehicles to have a positive impact on our environment. Thus, mass market vehicles should be provided incentives to lower acquisition cost,” Leano said.

For importers of luxury cars meanwhile, Leano said they can avail of non-fiscal incentives that may be granted these kinds of vehicles.

Leano is set to appear before the Senate today to discuss incentives for the manufacturers of green vehicles.”

At the same time, Leano questioned the Senate proposal’s plan to give importers incentives for nine years. Leano said it should be reduced to four years in order to allow local assemblers time to plan, re-tool and invest in related activities that would lead ot the local assembly of green vehicles.