BOI proposes tax exemptions for alternative vehicles

The Board of Investments in the Philippines (Bol) proposed a nine-year tax exemption and other incentives for domestic manufacturers and parts producers of electric, hybrid and other alternative fuel vehicles. The Bol also proposed a four-year incentive plan for importers of alternative or “green vehicles”. Details of the proposal include exemption from value-added tax and customs duty on the importation of parts used in environmentally friendly vehicles. Also included in the proposal is an exemption from VAT for raw materials, parts or components purchased domestically. The incentive plan would run for nine years. For importers of environmentally friendly vehicles, the plan would apply for four years. Importers would have to meet government requirements to qualify. There may also be non-fiscal perks for consumers of “green vehicles” under the program, which could include special parking areas, public charging stations and special road lanes. (April 5, 2011)