Archive · 16 Aug 2026
India fourth biggest embassy debtor on London congestion charges
London has a special fee for cars that drive in the busy city center, called the Congestion Charge.
Many countries have buildings called embassies in London where their diplomats work.
Some countries, including India, the United States, and Japan, have not been paying this fee for more than twenty years.
India owes the most money out of the South Asian countries — about 10.79 million pounds.
London officials say the fee is for a service, like paying for a bus ticket, so everyone must pay it.
But the embassies say it is a tax, and a special rule called the Vienna Convention protects diplomats from paying taxes.
The two sides cannot agree on what the fee really is.
Pakistan, Sri Lanka, the Maldives, and Bangladesh also owe money, but much less than India.
London officials say they will keep asking for the full amount through official channels and will not forgive the debt.
India owes £10.79 million in unpaid London Congestion Charges, the fourth-biggest balance among foreign embassies.
The dispute hinges on whether the charge is a fee for service, as British authorities say, or a direct tax, as some delegations argue.
India, the US, and Japan withheld payment for over two decades, citing Article 34 of the Vienna Convention on Diplomatic Relations.
India holds the highest South Asian balance; Pakistan owes £4,116,630, Sri Lanka £1,032,720, the Maldives £352,880, and Bangladesh £30,990.
Transport officials plan to seek full payment of all dues and fines through diplomatic channels and reject requests to forgive the balances.
- Who
- Foreign embassies, led by India, and British transit authorities and government officials.
- What
- A long-standing dispute over unpaid London Congestion Charges, with India owing £10.79 million.
- When
- Payments have been withheld for over two decades; no specific date is given.
- Where
- London, United Kingdom.
- Why
- India, the US, and Japan treat the charge as a direct tax exempt under Article 34 of the Vienna Convention on Diplomatic Relations, while British authorities classify it as a fee for service that must be paid.
Embassies withholding payment
British authorities demanding payment
Classifying the Congestion Charge
Embassies withholding payment
Embassies representing India, the US, and Japan treat the charge as a direct tax shielded from diplomatic liability by Article 34 of the Vienna Convention on Diplomatic Relations.
British authorities demanding payment
British transit authorities and government officials classify the Congestion Charge as a fee for service rather than a local tax, so foreign embassy staff must comply.
Settling the outstanding debt
Embassies withholding payment
Foreign delegations have withheld payment for over two decades based on their interpretation of diplomatic immunity from taxation.
British authorities demanding payment
Transport officials intend to seek full payment of all delinquent road fees and associated fines through diplomatic channels and reject any requests to forgive the balances.
- India's unpaid balance
- £10.79 million
- India's rank among embassies
- 4th biggest debtor
- Pakistan's unpaid balance
- £4,116,630
- Sri Lanka's unpaid balance
- £1,032,720
- Maldives' unpaid balance
- £352,880
- Bangladesh's unpaid balance
- £30,990
- Disputed classification
- Fee for service vs. direct tax
- Legal basis cited by embassies
- Article 34, Vienna Convention on Diplomatic Relations