Philippine Senate passed bill granting incentives to AFV production and imports

Under the proposed legislation, “fiscal and non-fiscal incentives shall be granted to the importation and manufacture of electric, hybrid and other vehicles using 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.”

The manufacturers or assemblers of completely knocked down units of alternative fuel vehicles (AFVs), including the conversion of vehicles into electric, hybrid and other AFVs, shall be exempted from payment of excise taxes and duties for nine years.

Manufacturers and assemblers are exempt from the payment of the value added tax for the purchase and importation of raw materials, spare parts, components and capital equipment used in the manufacture or assembly of AFVs for also nine years.

Importers of completely build units of AFV shall be exempt from payment of excise taxes and duties for nine years while owners of AFVs are exempt from the payment of the Motor Vehicle User’s Charge or the MVUC upon registration of their vehicles, according to Recto.

Source: Senate of the Philippines.