Lawmakers expect passage of bill on hybrid vehicles

MANILA, Philippines - Lawmakers are optimistic that a pending bill providing incentives for the manufacture, assembly and importation of hybrid vehicles will be signed into law in the coming weeks.

Batangas Rep. Hermilando Mandanas, one of the authors of House Bill 5460 or the proposed “Electric, Hybrid and Other Alternative Fuel Incentives Act of 2011,” said it is even possible the measure would be finalized in the bicameral conference committee and ratified by the House and the Senate when the 15th Congress convenes for the last time.

“We hope the House and Senate versions will easily be reconciled and ratified so the proposal will be enacted into law during the 15th Congress,” Mandanas said.

The House approved on third and final reading HB 5460 on March 21, 2012 while the Senate passed its version Senate Bill 2856 last January. The Senate requested for a conference committee on Jan. 29, 2013.

Mandanas said enactment into law of the proposal will provide an answer to the fuel-saving woes of the country, and lessen the demand for the importation of traditional or conventional of fossil fuels (gasoline and petroleum) and more for the production of alternative fuels like electric, solar, wind, hydrogen fuel cell, compressed natural gas (CNG), liquefied natural gas (LNG), and liquefied petroleum gas (LPG).

He said HB 5460 aims to address the climate change problem by providing fiscal and non-fiscal incentives for the manufacture, assembly, conversion and importation of electric, hybrid and other alternative fuel vehicles.

The bill aims to lay the groundwork for the widespread use of hybrid and alternative fuel vehicles in the country and thus lessen its dependence on imported fossil fuel as well as mitigate the deleterious effect of harmful carbon emission into the atmosphere to protect the environment.

The measure exempts from payment of excise taxes and duties for nine years from the effectivity of the law, 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.

It also exempts 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 including the conversion of vehicles into electric, hybrid and other alternative fuel vehicles.

Furthermore, it subjects to zero percent VAT for nine years the sale of raw materials, spare parts, components and capital equipment used in the manufacture or assembly of electric, hybrid and other alternative fuel vehicles including the conversion of vehicles into electric, hybrid and other alternative fuel vehicles.

 It also exempts from payment of excise taxes and duties for four years from the effectivity of the law, the importation of completely built units (CBUs) of electric, hybrid and other alternative fuel vehicles.

Other authors of the bill are Reps. Jose Zubiri III (Bukidnon), Ryan Luis Singson (Ilocos Sur), Rufus Rodriguez (Cagayan de Oro City), Maximo Rodriguez (Abante Mindanao), Albert Garcia (Bataan), Rachel Marguerite del Mar (Cebu City), Ma. Amelita Calimbas-Villarosa (Occidental Mindoro) and Roy Loyola (Cavite).