AUG.

15, 2012

NR # 2832

Solon supports tax exemption of manufacturers and importers of hybrid vehicles

The move to provide certain tax exemptions to manufacturers and importers of hybrid vehicles continues to gain support in Congress, with another lawmaker pushing for the proposal. Rep. Lord Allan Jay Velasco (Lone District, Marinduque) said his proposal to grant tax exemptions to manufacturers and importers of hybrid automobiles is in line with the constitutional provision declaring it is the duty of the State to sustain and protect its environment and natural resources. Specifically, Section 16 of Article ll of the Constitution states that the State shall protect and advance the right of the people to a balanced and healthful ecology in accord with the rhythm and harmony of nature, said Velasco, a Vice Chairman of the House Committee on Constitutional Amendments. He said his proposal seeks to encourage the importation and manufacture in the country of hybrid automobiles which are known to be energy-efficient and environment-friendly vehicles. His proposal, House Bill 6333, refers to a hybrid automobile as a vehicle which minimizes the total amount of energy to be consumed with respect to its fabrication, operation, and disposal, and represents a substantial improvement over existing electric and hybrid vehicles with respect to the total amount of energy so consumed. It uses an on-board rechargeable energy storage system and a fuel-based power source for vehicle propulsion. It provides that any person, partnership or corporation whose primary purpose is to engage in the business of manufacturing or importing hybrid automobiles shall be exempt from payment of import duties, customs and tariff duties. Such exemption shall also cover the importation and manufacture of the components and parts of hybrid automobiles based on the bill. It further provides the Bureau of Customs shall promulgate the necessary rules and regulations, and shall subject to review the tax exemptions every three years from the effectivity of the Act. The result of the review shall be submitted in a report to the Congress, the bill provides. Last March 21, 2012, the House approved on third and final reading House Bill 5460 seeking to provide incentives for the manufacture, assembly, conversion and importation of electric, hybrid and other alternative fuel vehicles and for other purposes. The measure was transmitted to the Senate last March 26, 2012. (30) rbb