Philippines boosts EV adoption with tax breaks, driving privileges under new law

Manila: Glenn Cuarto, a former Dubai-based Filipino expat, and now a businessman based in Iligan City, was one of the first 10 buyers of Tesla when its dealership opened in BGC here in 2024.

Cuarto, a father of three, regularly charges his white Tesla Model 3 at a nearby mall.

Giuseppe Alden, a father-of-two, recently took out a BYD electric vehicle from a local dealership.

He booked his eMAX 7, a family vehicle that seats 7, not knowing he'd save loads on fuel, as oil prices spike amid the ongoing Middle East war.

Now Guiseppe also charges the "blade" battery-powered wheels -- currently for free (2 hours each time) -- at an SM City mall near his house, while waiting for BYD technicians to install his home charger.

The brand-new MPV is fitted with a 71.8 kWh battery pack (top range of 530 km) and a power output of 201 horses.

Coupled with his 7,080-Watt home rooftop solar, the dentist now goes around on his family errands with juice from the sun.

Guiseppe still drives the Toyota hybrid vehicle he bought in 2024.

Though both Cuarto and Guiseppe are early adopters, the numbers are now swelling.

"When I took my BYD unit out, several other buyers were waiting for theirs. My salesman said their units are selling like hot cakes. Their lot from a fresh shipment would be gone in two weeks, or less."

In January 2026, new EV sales hit 2,610, a 63.1% increase compared to the 1,600 units sold in January 2025.

Now, bout 160 EVs are sold daily, as per the Manila Bulletin, potentially resulting in more than 58,000 units sold before 2026 is out.

An industry report shows that EV registrations (including hybrids, PHEVs, and BEVs) hit 29,715 units in the first seven months of 2025 alone, exceeding the total for all of 2024.

The Philippines is now actively promoting EV adoption through the Electric Vehicle Industry Development Act (EVIDA, Republic Act No. 11697), enacted in 2022.

The law mandates charging stations in public places, like malls. Implementing rules also mandate standardisation of charging gear.

EVIDA comes alongside executive orders and tax reforms like the TRAIN Law and extensions via Executive Orders (e.g., EO 12 and expansions to 2028) to boost renewable transport.

These provide a mix of fiscal and non-fiscal privileges to EV users (primarily for battery electric vehicles, or BEVs, with some applying to hybrids).

Here are the top privileges for EV users in the Philippines:

Exemption from Number-Coding (Vehicle Volume Reduction) Schemes
EVs are fully exempt from Metro Manila's number-coding restrictions (and similar schemes elsewhere) for eight years under EVIDA.

This allows unrestricted daily driving in traffic-congested areas like the National Capital Region, a major perk for urban commuters avoiding plate-number-based bans.

Fully electric vehicles enjoy a complete exemption from excise taxes under the TRAIN Law (and reinforced by EVIDA and related regulations).

This significantly lowers the purchase price compared to internal combustion engine vehicles. Hybrids typically get a 50% reduction.

EV owners receive a 30% discount on MVUC (the annual road usage fee), while hybrids get 15%.

This provides ongoing savings on registration and road maintenance fees paid to the government.

Other notable privileges include:

These incentives aim to offset higher upfront costs, reduce operating expenses (e.g., no fuel, lower maintenance), and encourage cleaner transport amid rising fuel prices and environmental goals.Sources:

The Philippine Department of Finance (DOF) has highlight the expanded EV incentives in May 2024, covering "non-fiscal perks" like number-coding exemption, priority registration, and MVUC discounts, as per the EVIDA Law, which kicked in on April 2022.

Philippine industry reports also highlighted EVIDA Law benefits, detailing excise tax exemptions, MVUC discounts, parking and number-coding exemption.