Philippine Senate Approves Alternative Fuel Vehicle Act

Get Ready for more green vehicles this 2013. The approval of the Alternative Fuel Vehicle Act is expected to pave the way for electric vehicles and hybrid cars. The bill is expected to lower the cost of EVs and Hybrids with its tax exemption schemes. And hopefully encourage more companies and investors and consumers toward greener cars.

“Every hour, our motor vehicles consume millions of liters of gasoline,”. “Every hour, 2,200 metric tons of carbon dioxide is pumped into the air, a carbon footprint that requires the planting of 56,000 trees to absorb all that poison. Every hour, we spend P53,000 to treat pollution-related diseases and to compensate for productivity losses. And every hour, four Filipinos die from dirty air.” – One of the bill’s author

The high cost of EVs and hybrids has been the main factor why these energy-efficient vehicles has not been fully embraced by the public yet. Despite the its significant growth in popularity and interest over the past few years. Even with efforts from the Philippine government to push for the use of cleaner vehicles, with the successful launching of electric jeeneys (ejeepneys) and electric tricycles (e-trikes) to the public last year.

The bill will grant fiscal and non-fiscal incentives for the importation and manufacture of electric, hybrid and other vehicles that use alternative sources of energy such as, but not limited to, solar, wind, hydrogen fuel cell, compressed natural gas or liquefied natural gas, methane and liquefied petroleum gas.

Manufacturers and assemblers will be exempted from paying and duties, as well as value-added tax for purchase and importation of raw materials, spare parts, components and capital equipment used in the manufacture or assembly of AFVs for nine years.

Exemption of excise tax for nine year is also granted for Importers of completely built-up AFV units, while AFV owners are exempted from paying the Motor Vehicle User’s Charge, otherwise known as the Road User’s Tax, when registering their vehicles. 

AFVs used as Public-Utility-Vehicles (PUVs) will be given priority in the registration and issuance of plate numbers, and priority in franchise application.

There are no figures yet as to how much lesser the price would be for AFVs. As well as no particular date yet when we would expect to see the lower prices.

This is definitely a good bill from the senate. They should continue to improve and pass on these kinds of act. Hopefully this is not just a political move with coming elections. 

If the prices does become affordable, is the country ready to handle these kind of vehicles now? For EVs, are we now able to handle charging stations?

These are somethings we are yet to find out. But what do you think? Are we ready? Would you get one yourself?


  • Pingback: The Many Various Kinds Of Emergency Power Generators | Green Energy()

  • Has the requirement that only coconut oil can be used also been removed from the renewable energy act? Is the word gasification not treated as a synonym for incineration anymore? RE does not need incentives like tax breaks, exemptions from duty and import taxes or VAT. Tax breaks are senseless, start-ups don’t make profits to levy a tax upon, it’s is creation of a mountain of paperwork to get the permissions and actually paying taxes through one-time fees (and not getting permits granted most of the time) Exemptions of duty and taxes, VAT included opens up a myriad of new permits to obey (with the one-time fees again and again, taxes again) to and many ways to use import goods for other uses than intended.

    We don’t need MORE paperwork, we need LESS paperwork. Create level playing field and tax ‘dirty’ tech within existing structures, clean up renewable energy acts to remove restrictions, stop cross-subsidising.

    Making a law is not difficult, implementing it and monitoring it is.

Page optimized by WP Minify WordPress Plugin