Dear PAO,

For a long time, my husband and I have wanted to own a family car. We are currently weighing our options. We cannot decide whether to buy a typical vehicle or opt for a hybrid vehicle. To help us decide, we want to know if owning a hybrid vehicle comes with incentives under the law.

Carol

Dear Carol,

To better understand this, we should first define what a hybrid vehicle is. Under Sec 4(n) of Republic Act (RA) 11697, a hybrid-electric vehicle refers to a vehicle with both a rechargeable energy storage system and a fueled power source for propulsion.

RA 11697, or the Electric Vehicle Industry Act, was enacted on April 15, 2022. One of the reasons for its enactment was to promote the use of different kinds of electric vehicles in the Philippines. Promoting the use of electric vehicles supports innovation in clean, sustainable and efficient energy which accelerates social progress and human development. It also helps protect the health and well-being of the people from the hazards of pollution and the greenhouse effect, which are typically the adverse effects of using fuel-powered vehicles.

Under the law, using such kind of vehicle, instead of the typical fuel-powered vehicle, may give you some advantage. Under Section 25 of RA 11697:

“Section 25. Non-Fiscal Incentives. – The following non-fiscal incentives shall remain in force for eight (8) years from the effectivity of this Act:

“(a) For EV users:

“(1) Priority registration and renewal of registration, and issuance of a special type of vehicle plate by LTO.

“(2) Exemption from the mandatory unified vehicular volume reduction program, number-coding scheme or other similar schemes implemented by the Metropolitan Manila Development Authority (MMDA), other similar agencies and LGUs (local government units).

“(3) Expeditious processing by the LTFRB of applications for franchise to operate, including its renewal, for PUV operators that are exclusively utilizing EVs.

“(4) Availment of Tesda Training Programs on EV assembly, use, maintenance and repair for its employees.”

It is clear from the abovementioned law that non-fiscal incentives are provided for those who choose to use an electric vehicle as defined under the law. These incentives would be implemented for eight years from the effectivity of the law in 2022.

In your case, if you opt to buy a hybrid vehicle, you may be given priority registration and renewal of registration. You will also be issued a special type of vehicle plate by the Land Transportation Office to distinguish your vehicle as a hybrid vehicle. More importantly, you will be exempted from the number-coding scheme that is currently being implemented by the MMDA and LGUs, and other mandatory unified vehicular volume reduction programs.

We hope that we were able to answer your queries. This advice was based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.

Thank you for your continued trust and support.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected].