Incentives for hybrid cars urged
MANILA, Philippines — Toyota Motor Philippines (TMP) has urged for the passage of a bill exempting all manufacturers and importers of hybrid vehicles from tax payments saying this is the only way to reduce the cost of environment-friendly vehicles and reduce the country’s oil import bill.
TMP vice-president Rommel Gutierrez noted that its Prius model, the pioneer in hybrid car technology, has remained costly to most Filipinos. It is priced at P2.2 million per unit. Because of the affordability issue, sales of Toyota’s hybrid cars (Prius and Lexus hybrid) reached only 100 units since the introduction of Prius here in 2009.
In its position paper, TMP said it supports House Bill No. 1 or “An Act Exempting All Manufacturers and Importers of Hybrid Vehicles from the Payment of Certain Taxes and for other Purposes” by Reps. Ronald V. Singson and Jose Maria F. Zubiri III to reduce the cost of buying the expensive hybrid car.
Section 1 of the bill seeks to grant all importers of hybrid cars including its parts and components from payment of import duties, customs and tariff duties, excise, value added, and ad valorem taxes.
TMP welcomed the introduction of the bill saying it will help Toyota strengthen its partnerships with the Philippine government and the automotive industry in supporting priority programs on alternative fuel sources and environmental protection.
The Japanese-owned car company cited five benefits of passing the bill. These benefits are: Hybrid cars will be made more affordable to a wider range of customers; government will net positive revenues due to the increase in hybrid vehicle sales volume; purchase of low emission and fuel efficient vehicles will be encouraged; dependence on importation of fossil fuels will be minimized; and energy conservation policies of the government and environmental pollution concerns will be addressed as required under the Clean Air Act.
“The passage of the Hybrid Bill granting tax and duty exemption to hybrid cars is therefore imperative,” he said.
TMP said that when it introduced Prius in 2009 in the Philippine market, it tackles the global challenge of reducing CO2 emissions in order to help prevent global warming.
“The hybrid system has achieved the goal of nearly twice the fuel efficiency of conventional gasoline engines at a minute fraction of the carbon emissions,” TMP said.
Print
Email
Comments
That is indeed an excellent idea only if TMP signs an agreement that the entire savings that is generated from the exemption will be applied solely to the decrease of the price of the unit. Perhaps, TMP can also source a cheaper replacement for the on-board batteries which I hear costs as much as a brand new engine to replace. All the batteries do need replacement after 3 years. It is not only the price which prevents the sale of the hybrid car but remember that the Philippines has one of the highest electricity costs. If TMP or the mother company can produce a system which can sustain itself minus the need for charging the battery using the household current, that would indeed, together with the above suggestions, make thier product more attractive in the long term (long after the warranty period has elapsed).
Please login or register to post comments.