The US embassy in London defies paying a $18.6 million bill for congestion charges.
In 2003, London introduced a congestion charge to alleviate traffic and air pollution in the city center. This fee of $19 is levied on all drivers within the charge zone from 7 a.m. to 6 p.m. on weekdays and 12 p.m. to 6 p.m. on weekends. TfL is now taking legal action to recover unpaid charges, even pushing for a case at the International Court of Justice.
The US embassy has reportedly refused to comply, claiming diplomatic immunity. A spokesperson for the embassy stated, "As per international law, as per the 1961 Vienna Convention on Diplomatic Relations, the congestion charge is considered a tax, and diplomatic missions are exempt from it." Many other embassies share this view.
However, TfL maintains that the congestion charge is considered a service fee and, as such, not tax-related, so diplomats should pay it. They have politely referred to the non-paid embassies as a "stubborn minority."
As of December 31, 2023, TfL estimates that 161 embassies, high commissions, and consulates owe over $182 million in unpaid charges. The Japanese embassy owes the second highest amount, at around $12.8 million.
This is not the first time such a dispute has surfaced. In 2005, the US embassy issued a note asserting that the charge is a tax and cannot be imposed on the U.S. government, its diplomatic personnel, or its military.
Although they initially paid the charge, they stopped doing so on July 12, 2005, arguing that the charge conflicted with duties owed to foreign missions and diplomats.
In 2020, UK Foreign Secretary Dominic Raab held meetings with diplomatic missions and international organizations to demand payment of outstanding fines and debts, including unpaid congestion charge fees.
The Japanese embassy explained to CNN that based on international conventions, the charge is not a tax, as it doesn't meet the criteria of being either "dues and taxes... such as represent payment for specific services rendered" or "charges levied for specific services rendered."
The UK Foreign Office holds a different opinion, stating that diplomats are expected to pay the charge, with no legal grounds for an exemption.
"Dispute over Whether US Embassy Should Pay London's Congestion Charge Starts Again" was the headline in a 2011 article from theoriginal.com on this same issue.
The US has repeatedly failed to abide by its financial obligations to London by refusing to pay the congestion charge, ignoring pleas from TfL. TfL issued a statement saying the US embassy could face "legal action." The embassy subsequently paid the debt.
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The US embassy in London's refusal to pay the congestion charge has garnered attention from around the world. Several diplomatic missions, including those from the UK and Japan, have found themselves in a similar predicament, challenging the tax-related status of the congestion charge in the context of international conventions.
Source: edition.cnn.com
