UK's tax policy - new Vehicle Excise Duty (VED) - is criticized by Mitsubishi as being incomprehensible.

The Outlander PHEV (at least those optioned to more than £40,000 before incentives - full price list below) is now charged in taxes like the Range Rover SDV8, a vehicle which has five times higher CO2 emission.

Mitsubishi Outlander PHEV

Mitsubishi Outlander PHEV

Mitsubishi Outlander PHEV, the most popular plug-in hybrid car in UK, is hit by higher taxes from April 1.

After Plug-In Car grant was lowered from £5,000 to £4,500 (BEVs) and £2,500 (PHEV with prce tag below £60,000), the new VED taxes deteriorate the environment for plug-in hybrid vehicle adoption.

From April 1, 2017 only BEVs (and other zero emission cars) keep the current tax relief at £0.

The plug-in hybrids (emissions: 1-50 g/km of CO2) are counted at £130 annual, but if their price exceeds £40,000 there is £310 annual supplement for five years from the second year of registration

"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."

Mitsubishi UK boss Lance Bradley doesn't understand why the Outlander PHEV falls where V8 cars sits at 219 g/km of CO2 emission.

The Outlander PHEV trim levels start at £34,249 in the UK, and top out at £45,999:

Mitsubishi Outlander PHEV lineup and pricing in the UK for 2017

Mitsubishi Outlander PHEV lineup and pricing in the UK for 2017

source: Autocar