Changes proposed for Philippine vehicle incentive package

The Board of Investments (BOI) in the Philippines has proposed that subsidies for alternative fuel vehicles be based on emission reduction instead of technology so that only vehicles that contribute to the reduction in carbon emission would be eligible. Gregory L. Domingo, chairman of the Board of Investments, made the proposal after several bills regarding the granting of incentives to alternative fuel vehicles were passed in Congress. Domingo called for the exclusion of hybrid vehicles from the incentive program. He said that some unscrupulous persons may put in small converters or improvements on a car and call it a hybrid vehicle. Sen. Ralph Recto, author of the bill, had strong reservations regarding Domingo’s suggestion. Recto’s bill also called for the exemption of electric vehicle manufacturers from paying excise tax and value added tax (VAT) for nine years. This, he said, would bring down the cost of importing and converting E-vehicles and their hybrid types. Domingo proposed that assemblers of alternative fuel vehicles should not be exempted from paying the 12% VAT on the imported parts and components. He reiterated that the proposed tax incentive package should be for CNG only and pure electric-fired vehicles. (August 3, 2011)