Pangilinan Files Bill Exempting Electric, Hybrid Vehicles from Taxes, Duties for Several Years

To encourage the manufacture, importation, and use of carbon-reducing vehicles, Sen. Francis "Kiko" Pangilinan has filed Senate Bill 638 which seeks to exempt electric and hybrid vehicles from taxes and duties for the next several years.

According to the bill's explanatory note, this is in line with the Philippines' ratification of the Paris Agreement on Climate Change in March 2017, with the country committing to reduce its carbon emissions by 70 percent by the year 2030.

"Climate change is upon us, and the Philippines is most vulnerable to it," Pangilinan said. "Proposed solutions must involve most of us in our everyday lives."

In the bill, Pangilinan seeks to provide the following incentives for the use of environment-friendly means of public transportation:

1. For manufacturers and assemblers, exemption from excise taxes and duties as well as suspension of value-added tax for capital equipment, spare parts, components, including charging stations for nine years from the effectivity of the law;

2. For importers, exemption from excise taxes and duties for three years from the effectivity of the law;

3. For owners and users, exemption from the number coding traffic scheme of the Metro Manila Development Authority (MMDA) "and other LGUs (local government units) concerned" as well as the motor vehicle user's charge (MVUC) imposed by the Land Transportation Office (LTO); priority in registration and issuance of plate number; priority in franchise application by the Land Transportation Franchising and Regulatory Board (LTFRB)--all for nine years from the effectivity of the law;

4. For building owners, requirement to provide exclusive free parking space also for nine years from the effectivity of the law; and

5. For local government units, requirement to allocate land and lot space for construction of charging stations.

"Tulad ng iba pa nating mga panukalang batas, nakatutok itong Senate Bill 638 sa kinabukasan (Like our other bills, this Senate Bill 638 is looking to the future). The climate crisis is real. And the Philippines is the most susceptible country to hazards brought about by climate change, according to scientists and experts worldwide," Pangilinan added.

"The proposal is good not only for the environment, but also for our tricycle drivers. Tinatanyang tataas ang kita ng tsuper ng 30 porsiyento dahil mas maraming pasahero ang kasya sa mga electric vehicle. At mas mura rin ang pag-charge dito kaysa sa presyo ng krudo (This is projected to increase the income of tricycle drivers by 30% because electric vehicles can carry more passengers and charging it is cheaper than fuel)," Pangilinan shared.

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