HomeWorld News"'Tax' or 'Service Fee'? US Embassy and UK Agency Clash Over 'Congestion...

“‘Tax’ or ‘Service Fee’? US Embassy and UK Agency Clash Over ‘Congestion Charge'”

The US Embassy in London is in conflict with Transport for London (TfL) as it has refused to settle over $18.6 million in unpaid congestion fees. To address traffic and pollution issues in central London, a congestion charge was implemented. Drivers within the congestion zone must pay a daily fee of $19 from 7 am to 6 pm on weekdays and from 12 pm to 6 pm on weekends.

Citing diplomatic immunity, the US Embassy has declined to pay the charges, according to CNN.

A representative from the US embassy stated, “As per international law outlined in the 1961 Vienna Convention on Diplomatic Relations, we believe that diplomatic missions are exempt from the Congestion Charge since it is considered a tax.” The spokesperson also mentioned, “This stance is also held by numerous other diplomatic missions in London.”

Despite this, TfL has announced that it intends to collect all outstanding fees and is “advocating for the issue to be addressed at the International Court of Justice.”

In counter to the US embassyโ€™s claim of diplomatic immunity, Transport for London (TfL) maintains that, in accordance with the UK government, the congestion charge in London is classified as a service fee rather than a tax. “This indicates that diplomats are not exempt from this payment.”

TfL has also courteously noted the presence of a โ€œstubborn minorityโ€ of embassies that refuse to pay the charge, despite “representations through diplomatic channels,” and has published an extensive list of those in violation.

Traffic Congestion Fee in India

To address the growing traffic problem in Bengaluru, a committee of experts, working alongside the Karnataka government, suggested implementing a congestion tax last year. The proposal is detailed in a report titled โ€œKarnatakaโ€™s Decade โ€“ Roadmap to a $1 Trillion Economy,โ€ which advocates for imposing a congestion fee on all non-exempt vehicles entering the city during peak hours.

The report highlights that the goal of introducing a congestion fee is to improve travel times for buses, cars, and delivery vehicles while raising awareness among commuters about their contribution to traffic congestion during busy periods.

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