Senator Sherwin Gatchalian proposed extending the Motor Vehicle User’s Charge (MVUC) until 2028 as the Senate committee on ways and means reviews the Electric Vehicle Industry Development Act (EVIDA).
He said electric and hybrid vehicles could be exempted from the MVUC, the tax imposed on all motor vehicles, instead of receiving subsidies.
He said EVs are already exempt from excise taxes until 2028, and a similar exemption from the MVUC—potentially until 2028 or 2030—could help accelerate adoption.
“This would encourage more people to shift,” Gatchalian said.
He said the proposal aligns with the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI), which aims for EVs to make up 50 percent of the country’s vehicle fleet by 2040.
Gatchalian, however, acknowledged that infrastructure remains a key challenge, with utilities struggling to upgrade systems to accommodate increased EV use.
He cited issues faced by power distributors including Manila Electric Co. and stressed the need for incentives to support infrastructure development.
These measures would likely fall under EVIDA rather than the MVUC law, he said.
The Senate is also evaluating whether to extend incentives under EVIDA, which are set to expire in 2028.
While EV adoption is growing among private consumers, businesses and public transport operators are transitioning more slowly due to cost concerns.
Gatchalian said falling EV prices are making them more accessible, but further incentives may be needed, particularly for micro, small, and medium enterprises (MSMEs) looking to replace traditional fleets.