Currently reading: Mitsubishi boss slams new VED tax changes

VED tax changed on April 1st and now an Outlander PHEV owner will pay almost the same amount in VED as a new owner of a Range Rover SDV8 after the first year of ownership

Mitsubishi UK boss Lance Bradley has accused the government of not having “a clear and consistent plan” for electric vehicles.

Bradley cited the vagaries of the new Vehicle Excise Duty (VED) that came into force on 1 April and mean that some versions of the brand’s best-selling Outlander PHEV plug-in hybrid, which has CO2 emissions of 41g/km, now costs nearly the same in VED as a Range Rover SDV8, which emits 219kg/km of CO2.

The Mitsubishi had a VED rate of £10 in the first year of ownership, compared with the Range Rover’s £1200. However, for the ensuing five years, both vehicles will attract a £310 supplement on top of their VED rates because they cost more than £40,000.

An Outlander PHEV owner will pay £130 in VED, plus the £310 supplement, making £440 per year. The Range Rover will attract £140 in VED, making £450 when the £310 supplement is added.

“It’s poorly thought through,” said Bradley. “It’s not very difficult to have an EV policy, but the new VED charging is muddled.”

Bradley’s frustration is exacerbated by the fact that the new VED rates contradict the government’s own attempts to encourage the take-up of hybrid and electric cars. It continues to provide subsidies for electric and hybrid vehicles, with the Outlander PHEV qualifying for a £2500 grant.

Car tax changes trigger record March sales

Everything you need to know about VED

Join the debate

Comments
12
Add a comment…
405line 6 April 2017

???

So why shouldn't it it's unnecessarily big and unnecessarily ugly. We need to get rid of this ridiculous type of vehicle
Bazzer 6 April 2017

/\Agreed/\

/\Agreed/\

Drive into Marlow (near High Wycombe) - just to watch small women driving huge 4x4s - it's so funny! If you can, stand outside a shop in what really is High Street and watch them try and reverse into a space. It's frickin marvellous entertainment.

coolboy 6 April 2017

get a life!

Mitsubishi "boss" is whining because the unfair tailwind they had is no more. Man up and tell to your mates in Japan to build up a better range of vehicles, not crap Mirages.

And your brand life is unlikely to become easyer, you had the NedCar factory for 10 years and look in what it ended.

max1e6 6 April 2017

Brazzer

'It would be nice if we had honest tax-raising here in the UK.'

We would need a new government for that to happen Brazzer.