Members of the Legislative Assembly’s Commission on Government and Administration heard arguments in favor of Legislative Bill 19744, known as the Incentive and Promotion of Electric Transport Act, this week.

The bill proposes significant incentives for motorists who choose to purchase electric and hybrid vehicles, including a complete exemption from import duty and related taxes, and an exemption from the standard 13 percent sales tax.

Those purchasing electric and hybrid vehicles would also be exempt from paying the annual road tax known as ‘marchamo’ for a period of five years, and would not have to pay parking meters.

Drivers of these vehicles would also be exempt from San Jose’s vehicular restrictions, or “tag days” in which vehicles whose license plates end in a certain number are restricted from driving in the core city during certain days of the week.

Supporters of the bill told the commission that the transport sector is responsible for two-thirds of Costa Rica’s total consumption of hydrocarbons.

The level of air pollution throughout the greater San Jose metro area exceeds recommendations by the World Health Organization (WHO), and is blamed for at least 350 premature deaths per year.

The economic cost to the country in terms of health problems related to air pollution in 2011 was estimated at more than US $390 million annually, or 1.1 percent of 2011 GDP.

Reps. Franklin Corella and Marcela Guerrero of the ruling Citizen Action Party (PAC) first presented the bill in October of last year.  The bill has been met with significant support since being presented.

If approved, the legislation would expire after five years or after 100,000 such vehicles are imported and exempted, whichever comes first.