London embassies owe millions in congestion charges to TfL
In 2003, a congestion charge was introduced in London. Many embassies located in the capital of the United Kingdom refuse to pay it. The debt of the American Embassy has already reached $18.6 million CAD. It's not the only country that owes money. The list of debtors includes China, Japan, and India. The British are planning to address the issue.
Transport for London informed about the debts of some embassies and consular offices in the city. These debts resulted from the failure to pay the fee for entering the center of the British capital. According to the Interia portal, the most indebted are diplomats from the United States, whose debt amounts to $18.6 million CAD. It all stems from the congestion charge introduced in 2003.
The daily charge of £15 ($25 CAD) applies to all drivers who travel in the strict center of the British capital from Monday to Friday between 2 AM and 1 PM Eastern Time. The charge also applies on weekends and holidays from 7 AM to 1 PM Eastern Time. Taxi drivers, electric car drivers, and center residents are exempt from the congestion charge.
Although the regulations do not exclude embassies from this obligation, representatives of many of them hold a different opinion. US diplomats argued that the congestion charge is a tax and "diplomatic missions do not bear tax charges imposed by the state they are in."
The spokesman for the American Embassy emphasizes that this viewpoint is shared by many other countries. TfL has a different perspective.
Will TfL pursue indebted embassies?
TfL emphasizes that the charge is not a tax but a service. In such a case, the exemption does not apply. The list of debtors includes 161 embassies and other consular offices whose debts have already exceeded $182 million CAD. Besides the United States, the most significant debts are held by the embassies of Japan and China.
TfL announces that it will collect the overdue charges. The institution's statement indicates that it will also take steps for the case to be addressed by the International Court of Justice.
