Do electric vehicles pay excise tax in the Philippines?

Under EVIDA, fully electric vehicles are provided a 100% excise-tax exemption, while hybrids receive a 50% exemption. This is reported by secondary sources as an EVIDA and TRAIN-law interplay rather than a single peso figure, so the excise that would normally apply is waived in full for a battery electric vehicle. Because the exact peso effect depends on the specific model, ask your dealer for the computation on the car you are considering rather than relying on a generic amount. Source: GSMH Law EVIDA primer (https://gsmhlaw.com/), LTO Portal (https://ltoportal.ph/), and BYD Cars Philippines (https://bydcarsphilippines.com/), as of 2026-05-30.

Are EVs exempt from number coding (UVVRP)?

Yes. Electric vehicles are exempt from the Unified Vehicular Volume Reduction Program (UVVRP), commonly called number coding, so there is no coding day to plan a commute around. EV owners also receive priority registration and renewal and dedicated parking slots with charging. Implementing details can vary by area, so confirm the current local rules with the LTO when you register. Source: LTO Portal (https://ltoportal.ph/), Manila Bulletin, 2022 (https://mb.com.ph/), and BYD Cars Philippines (https://bydcarsphilippines.com/), as of 2026-05-30.

How long do the EVIDA incentives last?

The MVUC and registration discounts, along with duty-free importation of completely-built-up units, run for eight years from EVIDA's 2022 effectivity. The sources describe this as an eight-year window from when the law took effect rather than a fixed end date. Separately, the EO 12 zero import tariff on battery EVs was extended by the NEDA Board on 15 May 2024 until 2028. Because durations and implementing rules can still change, verify the current status with the LTO and the DOE before purchase. Source: GSMH Law EVIDA primer (https://gsmhlaw.com/), Manila Bulletin (https://mb.com.ph/), ICCT (https://theicct.org/), and AseanBriefing (https://aseanbriefing.com/), as of 2026-05-30.

EV Incentives in the Philippines Under the EVIDA Act

If you are weighing an electric vehicle (battery electric vehicle, or BEV) purchase in the Philippines, the central piece of policy to understand is the Electric Vehicle Industry Development Act, known as EVIDA. It is the law that bundles together the tax, tariff, registration, and on-the-road perks that make owning an EV cheaper and more convenient than it would otherwise be. This guide explains, in plain terms, what those incentives are, how long they are meant to last, and what is still being worked out. Because these are policy and tax matters that affect a real purchase, every numeric or policy claim below is dated and cited to an authoritative source. Rules can still change as agencies finalize their implementing details, so treat this as general information and confirm the specifics with the LTO, the Department of Energy (DOE), and your dealer before you buy.

By mht-dev, Frontend Engineer & Creator

A frontend engineer who bought a first electric car in March 2026 and built EV Charge Calculator while working out the real cost of charging it, writing every guide from an everyday new EV owner's perspective.

What is the EVIDA Act (RA 11697)?

EVIDA stands for the Electric Vehicle Industry Development Act, enacted as Republic Act No. 11697, which lapsed into law on 15 April 2022. It is the Philippines's framework law for building up the electric vehicle industry, covering everything from charging infrastructure to the incentives that buyers and operators receive. Source: ADB Law and Policy Reform (https://lpr.adb.org/) and the GSMH Law EVIDA primer (https://gsmhlaw.com/), as of 2026-05-30.

The law also establishes the Comprehensive Roadmap for the Electric Vehicle Industry, known as CREVI, which is the national development plan that guides how the Philippines expands EV adoption, charging stations, and local manufacturing over time. CREVI is the planning backbone behind the incentives described in this guide. Source: GSMH Law EVIDA primer (https://gsmhlaw.com/) and the DOE legacy site (https://legacy.doe.gov.ph/), as of 2026-05-30.

In short, EVIDA is the umbrella that the more specific perks sit under. The tax exemptions, the registration discounts, and the on-the-road benefits in the sections below all flow from this single law, which is why understanding RA 11697 first makes the rest of the incentives easier to follow. Source: ADB Law and Policy Reform (https://lpr.adb.org/), as of 2026-05-30.

Tax and tariff perks

The headline tax break is on excise. EVIDA provides for a 100% excise-tax exemption for fully electric vehicles, and a 50% exemption for hybrids. This is an EVIDA and TRAIN-law interplay reported by secondary sources rather than a single peso figure, so think of it as the excise normally charged on the car being waived in full for a battery electric vehicle. Source: GSMH Law EVIDA primer (https://gsmhlaw.com/), LTO Portal (https://ltoportal.ph/), and BYD Cars Philippines (https://bydcarsphilippines.com/), as of 2026-05-30. The exact peso effect depends on the specific model, so ask your dealer for the computation on the car you are considering rather than relying on a generic figure.

On top of excise, there is a tariff break on importation. Executive Order No. 12 (series of 2023) imposed a temporary zero Most Favored Nation (MFN) import tariff on battery electric vehicles, which was implemented in February 2023. The aim was to make imported EVs cheaper at the point of entry. Source: AseanBriefing (https://aseanbriefing.com/), Newsbytes (https://newsbytes.ph/), PortCalls (https://portcalls.com/), and a DOE statement, as of 2026-05-30.

That zero tariff was then extended and widened. On 15 May 2024 the NEDA Board extended and expanded the zero MFN tariff until 2028, adding categories such as electric tricycles and quadricycles, hybrid and plug-in hybrid jeepneys and buses, hybrid and plug-in hybrid cars and trucks, and completely-knocked-down (CKD) EV units. The practical effect is a longer runway of cheaper EV importation across more vehicle types. Source: AseanBriefing (https://aseanbriefing.com/), Newsbytes (https://newsbytes.ph/), PortCalls (https://portcalls.com/), and a DOE statement, as of 2026-05-30.

On-the-road perks

Beyond the purchase-time taxes, EVIDA gives EV owners several benefits in day-to-day use. Under Section 24 of EVIDA, battery electric vehicles receive a 30% discount on the Motor Vehicle User's Charge (MVUC), as well as on registration and inspection fees, while hybrids receive a 15% discount. These are recurring savings tied to keeping the vehicle registered and on the road. Source: GSMH Law EVIDA primer, citing Section 24 (https://gsmhlaw.com/), and the LTO Portal (https://ltoportal.ph/), as of 2026-05-30.

EVs are also exempt from the Unified Vehicular Volume Reduction Program (UVVRP), commonly called number coding, which restricts when ordinary vehicles can be on certain roads based on their plate. For a daily commuter that means no coding day to plan around. EV owners further get priority registration and renewal, and dedicated parking slots equipped with charging. Source: LTO Portal (https://ltoportal.ph/), Manila Bulletin, 2022 (https://mb.com.ph/), BYD Cars Philippines (https://bydcarsphilippines.com/), and the GSMH Law EVIDA primer (https://gsmhlaw.com/), as of 2026-05-30.

EVs are also assigned a special green license-plate series. Under the LTO uniform plate policy, the EV series uses a rightmost letter from V to Z and a middle letter from A to M. One caveat: as of 2026-05-30, the LTO's full priority-registration implementing rules were still being finalized, so while the plate-letter policy is published, you should not assume you will be handed a green plate instantly. Confirm the current registration process with the LTO when you register. Source: GSMH Law EVIDA primer (https://gsmhlaw.com/) and a liveablecities.ph / MDPI review, as of 2026-05-30.

How long the perks last, and the bigger picture

The headline registration and importation incentives are time-bound. The MVUC and registration discounts, together with duty-free importation of completely-built-up (CBU) units, run for eight years from EVIDA's 2022 effectivity. The sources state the duration as an eight-year window from the law taking effect rather than a fixed calendar end date, so it is best read that way. Source: GSMH Law EVIDA primer (https://gsmhlaw.com/), Manila Bulletin (https://mb.com.ph/), and ICCT (https://theicct.org/), as of 2026-05-30.

EVIDA is not only about individual buyers. It also sets a mandatory 5% EV fleet requirement: industrial and commercial entities, public-transport operators, local government units (LGUs), national government agencies (NGAs), and government-owned and controlled corporations (GOCCs) must have at least 5% of their fleet as electric vehicles. This demand-side rule is meant to seed steady EV uptake across institutions, not just households. Source: a liveablecities.ph / MDPI review and the GSMH Law EVIDA primer (https://gsmhlaw.com/), as of 2026-05-30.

For context, the Philippines's EV market grew strongly in 2025, with BYD leading EV sales, and electric vehicles remain a small but fast-rising share of total vehicle sales. That momentum is part of why the EVIDA incentives matter now: they lower the cost of joining a market that is still early but expanding quickly. Source: CleanTechnica, Inquirer, and Manila Times, as of 2026-05-30. As always, treat the figures and rules here as general information and verify the current state with the LTO, the DOE, and your dealer before you commit to a purchase.

Sources and further reading

ADB Law and Policy Reform, EVIDA / Republic Act No. 11697 primer (as of 2026-05-30): https://lpr.adb.org/.

GSMH Law, EVIDA primer covering the excise exemption, the Section 24 MVUC discount, green plates, and the 5% fleet mandate (as of 2026-05-30): https://gsmhlaw.com/.

LTO Portal, EV incentives summary covering the excise exemption, MVUC discount, number-coding exemption, priority registration, and parking (as of 2026-05-30): https://ltoportal.ph/.

Department of Energy (DOE) legacy site, EVIDA and CREVI background (as of 2026-05-30): https://legacy.doe.gov.ph/.

Manila Bulletin (https://mb.com.ph/) and ICCT (https://theicct.org/) on the UVVRP exemption and the eight-year incentive window (as of 2026-05-30).

AseanBriefing (https://aseanbriefing.com/), Newsbytes (https://newsbytes.ph/), PortCalls (https://portcalls.com/), and a DOE statement on Executive Order No. 12 and the NEDA Board zero-tariff extension to 2028 (as of 2026-05-30).

BYD Cars Philippines (https://bydcarsphilippines.com/) and a liveablecities.ph / MDPI review for the excise exemption, number-coding exemption, and green-plate policy (as of 2026-05-30). Always confirm the live rules with the LTO, the DOE, and your dealer before purchase, as implementing details can change.

Frequently asked questions

What is the EVIDA Act?: EVIDA is the Electric Vehicle Industry Development Act, enacted as Republic Act No. 11697, which lapsed into law on 15 April 2022. It is the framework law for developing the Philippines's electric vehicle industry, and it establishes the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI) as the national development plan. The buyer incentives covered in this guide, the excise exemption, the import-tariff break, the MVUC discount, and the on-the-road perks, all flow from this law. Source: ADB Law and Policy Reform (https://lpr.adb.org/), the GSMH Law EVIDA primer (https://gsmhlaw.com/), and the DOE legacy site (https://legacy.doe.gov.ph/), as of 2026-05-30.
Do electric vehicles pay excise tax in the Philippines?: Under EVIDA, fully electric vehicles are provided a 100% excise-tax exemption, while hybrids receive a 50% exemption. This is reported by secondary sources as an EVIDA and TRAIN-law interplay rather than a single peso figure, so the excise that would normally apply is waived in full for a battery electric vehicle. Because the exact peso effect depends on the specific model, ask your dealer for the computation on the car you are considering rather than relying on a generic amount. Source: GSMH Law EVIDA primer (https://gsmhlaw.com/), LTO Portal (https://ltoportal.ph/), and BYD Cars Philippines (https://bydcarsphilippines.com/), as of 2026-05-30.
Are EVs exempt from number coding (UVVRP)?: Yes. Electric vehicles are exempt from the Unified Vehicular Volume Reduction Program (UVVRP), commonly called number coding, so there is no coding day to plan a commute around. EV owners also receive priority registration and renewal and dedicated parking slots with charging. Implementing details can vary by area, so confirm the current local rules with the LTO when you register. Source: LTO Portal (https://ltoportal.ph/), Manila Bulletin, 2022 (https://mb.com.ph/), and BYD Cars Philippines (https://bydcarsphilippines.com/), as of 2026-05-30.
How long do the EVIDA incentives last?: The MVUC and registration discounts, along with duty-free importation of completely-built-up units, run for eight years from EVIDA's 2022 effectivity. The sources describe this as an eight-year window from when the law took effect rather than a fixed end date. Separately, the EO 12 zero import tariff on battery EVs was extended by the NEDA Board on 15 May 2024 until 2028. Because durations and implementing rules can still change, verify the current status with the LTO and the DOE before purchase. Source: GSMH Law EVIDA primer (https://gsmhlaw.com/), Manila Bulletin (https://mb.com.ph/), ICCT (https://theicct.org/), and AseanBriefing (https://aseanbriefing.com/), as of 2026-05-30.

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