The ban, which will take effect on Friday, is part of a wide-ranging new law aimed at eliminating distractions for drivers.
These include talking or sending messages on mobile phones, putting on make-up, and eating or drinking coffee while driving, according to Aileen Lizada, spokeswoman for the national transport regulatory agency.
But it is the ban on the religious icons and trinkets -- which visitors to the Philippines inevitably see hanging off rearview mirrors in taxis and the colourful mini-buses known as jeepneys -- that has stirred the most controversy.
"This is an overreaction, insensitive and lacks common sense," Father Jerome Secillano, executive secretary for public affairs at the Catholic Bishops' Conference of the Philippines, told AFP today.
"With these religious images, drivers feel they are safer, that there is divine intervention and they are being guided and protected."
Piston, an association of jeepney drivers and owners, also criticised the plan, saying there was no data showing rosaries and religious trinkets caused accidents.
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