Philippines Paves Way For Green Cars
May 24, 2011 Taxation in Philippines
The government of Philippines is aiming to instate tax reductions in order to make a significant positive impact in efforts to reduce the country’s levels of greenhouse gas emission and bolster public acceptance of eco products.
The House of Representatives of the Philippines is one step closer to instating a new green tax measure, after having approved the first reading of a new bill which would see a 30 percent decrease in the factory price of eco-friendly automobiles.
The new draft bill would lower the commodity tax rate faced by car manufacturers, for the next five years, on completed eco-automobiles by approximately PHP 25 000 per vehicle. According to the Minister of Finance Lee Sush-der, the tax change will result in local car manufacturers producing greater numbers of LPG powered environmentally-friendly cars. The lowered prices are expected to rapidly sway consumer preferences and encourage a greater uptake of low-pollution car models. The Minister said that any such changes in consumer or producer behavior will perfectly compliment the government’s energy conservation strategy and national pollution reduction plan.
The bill must face two more legislative readings before it is passed, but the Finance Minister suggested that the process is expected to go smoothly, with no strong opposition to the bill. If enacted into law, the new tax measure is expected to generate consumer demand for an additional 5 200 LPG vehicles over the next five years. It is estimated that the tax cut will reduce government revenues the government PHP 136.5 million over the same time period.
Photo by Mr. T in DC