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12° Nicosia,
18 June, 2024
 
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Cyprus owes the UK over £1.4M in London congestion charges

TfL publishes list of non-paying embassies; dispute centers on whether charge is a tax or service fee

Newsroom

Transport for London (TfL), the authority managing the British capital’s transportation system, has published an updated list of foreign embassies that have refused to pay the Congestion Charge, a fee imposed since 2003 on vehicles entering the city center. The report highlights significant outstanding debts, with the U.S. Embassy topping the list with £14.6 million in unpaid charges.

Following the U.S., the Japanese Embassy ranks second with a debt of £10,073,988. In 26th place is the High Commission of the Republic of Cyprus, reportedly owing £1,435,080 for the period from 2003 to December 31, 2023.

Diplomats from various countries argue that they should be exempt from the Congestion Charge, claiming it constitutes a tax from which they are protected under the Vienna Convention on Diplomatic Relations. This convention provides diplomatic immunity from most local taxes.

TfL, however, maintains that the Congestion Charge is not a tax but a fee for the provision of specific services, and thus diplomats are not exempt. "We will continue to claim all unpaid Congestion Charges and related penalty notices and are pressing for the matter to be heard by the International Court of Justice," TfL stated.

The ongoing dispute has been referred to the Crown Prosecution Service (CPS) by sources within TfL. Diplomatic sources indicate that this issue has persisted for years, with the UK Government steadfast in its stance, while the majority of European and other nations continue to refuse payment, citing the protections offered by the Vienna Convention.

The diplomatic impasse reflects broader tensions over the application of local charges and the interpretation of international diplomatic agreements. TfL's pursuit of the unpaid fees, despite diplomatic objections, underscores the complexities involved in reconciling local laws with international conventions.

[Information sourced from CNA]

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Cyprus  |  UK  |  Britain  |  tax

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