Lawmakers seek incentives for hybrid cars

MANILA, Philippines - At least four congressmen are seeking incentives for the production, importation and purchase of hybrid cars and other vehicles to lessen air pollution and consumption of petroleum products.

Representatives Rufus Rodriguez of Cagayan de Oro City and his brother Maximo, who represents the party-list group Abante Mindanao, Hermilando Mandanas of Batangas, and Ryan Luis Singson of Ilocos Sur have filed separate bills that aim to promote the use of hybrid vehicles.

In filing Bill 5161, the Rodriguez brothers said prices of less polluting vehicles like Toyota’s Prius are prohibited because of the high excise and other taxes being levied by the government.

“As a result, only the rich, and even among them only a few can afford to buy a Prius,” Rep. Rufus Rodriguez said.

He said hybrid vehicles, aside from emitting less pollution, score high in terms of energy-saving efficiency.

“Test driving results show that a full tank of unleaded gasoline costing P1,800 for a hybrid car would travel the distance equal to that of a vehicle consuming P3,000 worth of diesel,” he said.

Under Bill 5161, a hybrid vehicle is any vehicle that combines the technologies of using an internal combustion engine with a battery-powered electric motor.

The measure covers electric and other alternative fuel-run vehicles. It excludes vehicles powered by gasoline, petroleum, bio-diesel, and bio-ethanol.

It would exempt the manufacture or assembly of completely knocked down parts of electric, hybrid and other alternative fuel vehicles from excise tax and duties for nine years from the moment the proposed law on incentives takes effect.

During the same period, the purchase and importation of raw materials, spare parts, components, and capital equipment used in the production or assembly of hybrid vehicles would be exempt from the 12-percent value added tax.

The importation of completely built units or CBUs would also be exempt from excise tax and import duties for nine years.

Owners of hybrid cars would be spared from paying the motor vehicle user’s charge being collected by the Land Transportation Office and from the number coding scheme of the Metro Manila Development Authority.

Rep. Rufus Rodriguez said the proposed tax exemptions should drastically bring down the cost of hybrid vehicles.

He said if the cost of a Toyota Prius, which he estimated at P2 million, could be brought down to P1 million, many of the rich and even middle-income people could afford to buy such hybrid.

“It produces less pollution, plus you have more miles on your battery and gasoline,” he said.     

Mandanas has filed a similar bill seeking incentives for the “manufacture, assembly, conversion and importation” of hybrid vehicles, while Singson has introduced Bill 5139, which proposes certain tax exemptions for producers and importers of hybrids.