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.