Philippine government approves bill granting tax incentives to automakers

The Philippine government has approved a bill which grants tax incentives to electric, hybrid, and other alternative-powertrain vehicles. “An act Granting Incentives for the Manufacture, Assembly or Importation of Electric, Hybrid or Alternative Vehicles” gives excise tax exemptions and duties for nine years on the manufacture or assembly of electric, hybrid, and other alternative-fuel vehicles, and on the conversion of vehicles into electric, hybrid, and other alternative-fuel vehicles. The bill also gives exemptions on the payment of value-added tax (VAT) for nine years on the importation and sale of raw materials, spare parts, components, and equipment that will be used in manufacturing or assembling electric, hybrid or alternative vehicles. Payment of excise taxes and duties will also be waived for four years on the importation of completely built-up units (CBUs) of green vehicles. (March 20, 2012)