SENATE Majority Leader Juan Miguel F. Zubiri on Monday said the government may look at alternatives, such as renewable energy and electric vehicles, to address the rising costs of fuel instead of suspending the excise tax on fuel.
“May I make a strong suggestion to government: let us go back to looking at renewable resources of energy and e-vehicles because transport companies, the commuters, and car owners are complaining. Maybe we can promote the importation or manufacturing of e-vehicles in the country,” he told reporters at the Senate building in Pasay City.
“This is better instead of always trying to figure out how to bring down the prices of oil,” he added.
Mr. Zubiri also urged the Department of Energy (DoE) and the Department of Finance (DoF) to provide an incentives program for e-vehicles in the country and promote it as an alternative mode of transportation.
Jeepney drivers may also shift to e-jeepneys to save costs on fuel, he also said.
Under Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN), purely electric vehicles and pickups are exempted from excise tax on automobiles.
The senator pointed out that higher costs of fuel was a worldwide issue, not a problem that the Philippines was solely facing. He said the suspension of excise tax on fuel would have minimal contribution to ease oil prices.
“The suspension of excise tax on fuel is one way to help. But I am pushing for alternative methods: e-vehicles, alternative fuels… Imagine if your car is an e-vehicle, it’s just plug and use. There is no problem, 100 kilometers in one charge,” he said.
According to the Department of Trade and Industry — Board of Investments (DTI-BoI), some 28 firms are engaged in the manufacturing of electric vehicles in the country, 11 in parts and component manufacturers, and seven importers of e-vehicles. Domestic sales in the industry posted P214.2 million in 2013 based on DTI-BoI.
Through Executive Order No. 488 issued in 2006, tariff rate of e-vehicle components were reduced to zero in order to further lessen the country’s fossil fuel consumption and allow manufacturers to import components at a more affordable price. — Camille A. Aguinaldo
