APRIL 2, 2012 DATE

NR # 2697
REF. NO.

Solon seeks inquiry into tax exemption and government subsidies provided in electric tricycle project of DOE-ADB
A lawmaker has called for a congressional inquiry into the grant of exemption of taxes and duties, and the provision of other government subsidies in the importation of parts, equipment and machineries needed by the private sector for the manufacture of electric tricycles to local government units. Rep. Teodorico Haresco (Party-list, Ang KASANGGA) said the tax and duties exemption privileges and government subsidies are provided under the E-Trike Project of the Department of Energy-Asian Development Bank. There is a need to revisit and review the existing duties and taxes, including government subsidies in the importation of parts, machineries and equipment that will translate to fair and reasonable cost of electric tricycles and result in reduction of loan amount of the LGUs from the Land Bank of the Philippines, said Haresco. Haresco sought the inquiry through House Resolution 2258, saying the inquiry will ensure that the primary objectives of the E-Trike Project are carried out, which are namely to promote the use of alternative fuel vehicles and encourage private sector participation in the design, manufacture, assembly and supply of electric tricycles to LGUs under the DOE-ADB E-Trike Project. Proper tax incentives and government subsidies should be imposed to achieve the widespread adoption of electric tricycles as well as access to low-cost financing and the development of a sustainable local E-trike industry, said Haresco, a vice chairman of the House Committee on Small Business and Entrepreneurship Development. The government through the DOE and the ADB established a National Electric Vehicle Strategy (NEVS) to promote the use of alternative fuel vehicles geared towards the reduction of the following: fuel consumption by at least 2.8 percent which translates to 560,926 barrels of fuel per year; carbon footprint of the transport sector in Metro Manila and other selected cities or LGUs; and air and noise pollution from tricycles plying the streets of these selected areas. Haresco said the National Economic Development Authority-Investment Coordinating Committee (NEDA-ICC) also approved the P21.50 billion Market Transformation through introduction of the energy efficient E-Trike Project for the provision of 100,000 units of electricity-run tricycles to LGUs nationwide to replace the same number of gas-fed internal combustion engine tricycles particularly those aging units and those running on two-stroke gasoline engines of which US$300 million will be sourced from an ADB loan, US$1 million Clean Technology Fund (CTF) grant, US$100

APRIL 2, 2012 DATE

NR # 2697
REF. NO.

million from CTF loan and US$79 million from the government counterpart fund. Haresco said the E-Trike units will be acquired by target LGU through the LBP as the project financial institution for the E-Trike Special Loan Program over the five-year project implementation period and distributed to tricycle operators or drivers on a least to own arrangement or driver boundary or payment scheme to LGU. The E-Trikes will spur development of local capabilities to design and maintain small-sized electric vehicles that will entice private investors to set-up local manufacturing facilities that will lead in the creation of more jobs and a dynamic market for locally assembled units for export to the ASEAN region in the future, Haresco said. (30) rbb