Press Release
August 19, 2009

Zubiri seeks incentives for manufacturers, sellers
and importers of hybrid cars

Senate Majority Leader Juan Miguel Zubiri on Wednesday introduced a measure that seeks to provide incentives to the manufacture, sale and importation of hybrid vehicles in the country.

Senate Bill 3397, or an Act Providing Incentives to the Manufacturer, Sale and Importation of Hybrid Vehicles, encourages public support for the development of hybrid the hybrid car industry in line with the government's Alternative Fuels Program.

The senator noted that government launched the program in an effort to reduce the country's dependence on imported oil, and to provide cheaper and a more environment-friendly alternative to fossil fuel.

"With the continuing rise of fuel cost and the imminent decline of extractable world oil deposit, the demand for alternative transportations is expanding," Zubiri said.

"Hybrid vehicles not only provide better fuel economy that result in added savings for consumers but also offer lower greenhouse gasses emissions," he added.

SB 3397 proposed that any individual, business partnership or corporation engage in the manufacturing, selling or importation of fuel-saving hybrid cars, including its parts, be exempted from import duties, customs, tariff duties, and excise, value added tax and ad valorem taxes.

It also proposes the creation of an Inter-Agency Council that will regulate and control the grant of tax exemptions to the manufacturers, sellers or distributors and importers of hybrid cars based on the conditions and regulations which the council will later set up.

The inter-agency council will include officials or representatives of the Secretary of Finance which will act as the council chairman; secretaries of Energy, of Science and Technology, and of Trade and Industry; and the Bureau of Customs Commissioner as members.

The grant of tax exemptions will undergo periodic review by the council or every five years from the date the law takes effect.

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