London road dues: India fourth biggest debtor among embassies with £10.79 million tab

At the center of the long-standing impasse is a legal debate over how the fee is defined. British transit authorities and government officials classify the Congestion Charge as a fee for service rather than a local tax, meaning foreign embassy staff must comply.

In contrast, several foreign delegations — including those representing India, the US, and Japan — treat the assessment as a direct tax. Citing Article 34 of the Vienna Convention on Diplomatic Relations, which shields diplomatic missions from local taxation, these nations have consistently withheld payment for over two decades.

Within South Asia, India holds the highest balance of unpaid charges by a wide margin. Pakistan’s High Commission follows behind with £4,116,630, while Sri Lanka owes £1,032,720, the Maldives owes £352,880, and Bangladesh owes £30,990.

Transport officials maintain that they intend to seek full payment of all delinquent road fees and associated fines using diplomatic channels, rejecting any requests to forgive the balances.