Pay up Obama: President made to cough up C-charge for 'The Beast'

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Beast limo: Ordered to pay congestion charge

Pay up Obama: President made to cough up C-charge for 'The Beast'

Peter Dominiczak, City Hall Correspondent
26 May 2011

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Barack Obama has been ordered to pay the congestion charge for his security vehicle "The Beast", Boris Johnson revealed today.

The Mayor told the Standard each car in the President's motorcade will be billed for £10 - including the bomb-proof Cadillac. Mr Johnson also said he had a discussion with Mr Obama about the US embassy's refusal to pay £5.3 million in C-charge fines.
But the embassy said its position on not paying the C-charge was "wholly in accordance" with a convention on taxing diplomats. Mr Johnson said: "Our roads were not closed during the President's visit so his motorcade will pay. The Beast will pay the charge, I'm delighted to say.
"We didn't charge the Pope when he was here because all the roads were closed, so the Popemobile was exempt. But this was different."
Mr Johnson raised the issue of the US embassy's unpaid C-charge bill with the President during a state banquet at Buckingham Palace. He said: "We had a very friendly conversation. Suffice to say discussions will be ongoing."
A spokesman for the Mayor later said: "They already owe £5.3 million so it is probable the bill for the motorcade will just go on top of that."
A number of embassies in the capital insist the congestion charge is a tax giving them immunity from it.
The US embassy's outstanding bill is the highest, with well over 45,000 notices since the C-charge was introduced in 2003. A source there said they were unaware of the conversation between the President and the Mayor, adding: "Our position on the congestion charge is well known.
"We conscientiously abide by all UK laws, including paying fines for all traffic violations, such as parking and speeding violations.
"Our position on the congestion charge is based on the 1960 Vienna Convention on Diplomatic Relations, which prohibits the imposition of this sort of tax on diplomatic missions."
Mr Johnson made his comments during today's launch of the first London-wide network of electric car-charging points in Kingston. He said: "Using an electric car couldn't be simpler.
We've got to get over the neanderthal Clarksonian approach to cars."
President Obama left Britain this morning with a wave from the steps of Air Force One. His personal helicopter Marine One took him to Stansted airport, where he departed for the G8 summit in France.

Reader views (36)

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The other Embassies should stop paying the charge and see what Boris does when there is a huge big hole in the revenue income

- Camobama, London, 27/05/2011 06:46
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It looks as if the majority agree that this is a "tax". I see it the same way, but then I see every charge the gvt lays on its citizens as a tax.

- Mike, Olympia USA, 27/05/2011 05:29
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And who picked up the tab for dinner? Did Mr. Obama leave a suitable tip? Whoops, convention say no tips because they're perceived as political gift giving. And the 50p to use the loo? You say Boris loaned him that. Yes, and insisted on an IOU... with interest. Good to see the mayor is doing his job. And please, don't anyone suggest that the idea was Ken Livingston's.

- Wayne, Fredericton, Canada, 27/05/2011 05:18
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What an absolute embarassment this is.
He's a guest invited by the queen and with all the other problems going on around the world good Boris has only one issue on his mind...........the Congestion Charge.
How is it a service when all we are doing is entering an area of London which offers the same as any other City, Town and Village in the UK........tarmac and potholes!
It's a conning disgusting tax which hurts everyone including small buisnesses and poor people.

- Steve, UK, 26/05/2011 23:20
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Melvyn, I take your point that it is described as a charge, but you cannot alter a legal definition - ie you cannot describe something as a charge and therefore make it not a tax. Sweden took legal advice from various sources and was told that there was no doubt that although they called it a charge, it was in fact a tax! No-one, whether an individual or a government department, can simply make something exempt from international taxation rules by changing the description on the box or the sign. The question of whether the USA and EU should not pay is a different matter - there is a really important issue as well - to simply say "we will pay even though we do not have to" opens the door to legal challenges in countries where judges can strike down "unnecessary spending".

- Damian Hockney, London, UK, 26/05/2011 23:12
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The Congestion Charge is a CHARGE it says so in its name!!!
Melvyn the Congestion charge is also a CON it says that in it its name too.

- Mr S.Port, London, 26/05/2011 21:10
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The Congestion Charge is a CHARGE it says so in its name!!!

Its a charge to enter a specified area of London with revenue raised to fund transport in London!!!

The charge is not subject to VAT because its a CHARGE!!!

Anyway, why did Boris not have the gumption to take along a set of wheel clamps and clamp the beast until all outstanding payment by the US Government are paid?

Anyway Boris has ruined his case by abolishing the WEZ which covered many embassies in west London!!!

Fact is Boris is desparate he knows he is a failure and has to play at being Mayor like Cameron is playing being a Prime Minister!!

- Melvyn Windebank, Canvey Island, Essex, 26/05/2011 18:52
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Simple really.
Can businesses charge this money against their taxes?
If they can (under UK tax law), then, it is a tax. If not, then it isn't.
Too much futile argument about matter of which most are not really experts - any more than I am.
However. Interested to learn of the flaw in my argument.

- Norman Speight, London UK, 26/05/2011 18:15
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I don't understand this story - are you saying that the USA has agreed to pay this tax? Or is it just a pro-Boris kite flyer/face saver? I understand from the US government department responsible that the USA continues to not pay and that there is no change. By international definition, the C Charge is a tax, and this was finally proved beyond doubt when the former Mayor put the price up by 60% without offering any further services. When Stockholm introduced the same thing, it quickly changed the name of it from a charge to a tax on legal advice (from the EU). Strictly, the UK should do the same thing. Toll roads are entirely different and the US Embassy pays things like this (and parking charges, for example). Shortly after the USA took the decision not to pay, the EU summoned an ambassadors' meeting in London and agreed with the tax definition, thus leading to most EU embassies not paying. The EU collectively owes more in C Charge non payments than the USA. Some EU nations (like Sweden) carried on paying for political reasons - they wanted to introduce their own charges!

- Damian Hockney, London, UK, 26/05/2011 17:42
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Surely some kind of official judgment needs to be made on this, possibly even in an international court? If the US Embassy and Obama should pay, they would only do so if ordered to by an international court, rather than by Boris whom they would regard as being beneath them. If they don't have to pay, then Boris should be made aware of that properly.

- David, London, 26/05/2011 17:30
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You might be lucky Boris , the Americans do a lot for third world countries.

- Davey_Buoy, Chertsey, 26/05/2011 17:25
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That ticket will be filed long with the other 10 001 tickets charges and fines, still waiting to be paid going back to when Ken was Mayor. Diplomatic Staff always think they are exempt from laws affecting ordinary Londonners. They need a realit check not a rain cheque.

- dhan raj, basildon, 26/05/2011 16:48
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Amazing that the Standard is making this its main front page story in the printed edition.

What have you got against Obama ES?

- Stephen C, LONDON, 26/05/2011 16:27
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How utterly petty to charge for the cavalcade; as one of the most important (and filthiest) capitals, London will be the laughing stock of the world. As for the c-charge, it should be slapped on Johnson himself...that hair alone congests my tv screen every time he's on the news. Shame on you, haystacks.

- tracey, london, uk, 26/05/2011 16:08
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The Congestion charge is a tax - simple; and overseas embassies do not pay tax so therefore they do not have to pay.

Boris is being a plonker chasing this and anyway, what a way to treat honoured guests charging them just to travel in the city to which they were invited to attend.

- Peter Roberts, Telford UK, 26/05/2011 15:53
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despite the fact that he was invited by our government, no one invited him to bring a cavalcade of cars with him... and as for taking his own glass for his bedroom window in Buckingham Palace, what a paranoid nation the yanks are! I agree with Nigel of London.

- valerie, essex, 26/05/2011 15:40
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Nigel, London

Since when as the 'congestion charge' been for a service, what service exactly is being provided?. The use and upkeep of the public highway is already being paid for from general taxation, local taxes and the road vehicle licence. The 'congestion charge' is a tax and accredited diplomatic staff do not pay tax in the country to which they are posted. That is why some motor vehicles and cycles are exempt from paying it. If the Mayor, or anyone else, wishes to challenge whether the 'congestion charge' is a payment for a 'service' or is a 'tax' then why don't they do so through the Courts or Parliament. The simple answer is, is because they, and we, know it is a 'tax'.

- paul, Coulsdon, 26/05/2011 15:15
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I hope Obama doesn't cough up and neither should the US embassy. Good on them I say and Boris shouldn't be embarrasing himself in front of Obama but then again he is an embarrasment full stop.

- David, Luton, 26/05/2011 15:00
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I sincerely hope this is just a joke! Boris is sooooo embarrassing.

- jb, sussex, 26/05/2011 15:00
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What a load of old tosh! Obama was here at our invitation. You don't treat guests like that! Please, Mr Mayor, do not make a fool of us or yourself.ge

- joan, london UK, 26/05/2011 14:37
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"The Beast will pay the charge, I'm delighted to say"

The beast will pay nothing, thereby making Boris look the idiot he is. 2nd rate childish politics.

- Steve, London UK, 26/05/2011 14:37
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While you are on a roll Boris – Does the Queen (our own head of state not the visiting American one) pay the congestion charge?

While she has made arrangement with the national government over her Income Tax has she made any arrangement with you about paying the congestion charge?

If not, then it is a real snub to every Londoner that she treats our democratically elected supremo with such contempt. Apart from electing you as Mayor what has London done to deserve such treatment?

When you think about it, if her car has no number plates then it must stick out like a sore thumb on your cameras. So please Doris make an example of her and publish how much the Queen has paid in congestion charge and shame all there other heads of state and Johnnie Foreigner diplomats into coughing up.

Boris, you are doing a fantastic job. Are you a paid employee or just a volunteer on the re-elect Ken 2012 campaign?

- Marvin, Wood Green, 26/05/2011 14:16
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"Boris is (rightly, in my view) trying to embarass them - Nigel, London"

No, BoJo is just a clown who should be worrying about the dreadful state of public transport and not about matters that the FO's responsibility.

- John Smith, London, RUSSR, 26/05/2011 14:15
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Boris is (rightly, in my view) trying to embarass them. The C-charge is not a tax, it's a payment for a service. It's not even an essential service (unlike electricity or telephones). They could choose not to drive (like most Londoners) and use taxis or hired limos or even public transport for some or all journeys inside the C-charge zone. It's not petty - the millions that the US embassy has not paid have perforce been paid by London's ratepayers instead.

- Nigel, London, 26/05/2011 13:54
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Surely the Congestion Charge is a tax and therefore not payable by embassies. If it is a toll or service charge would it not be subject to VAT? Or has it been zero rated or exempted? If so, have the VAT rules been amended?

- Chas, Leytonstone, E11, 26/05/2011 13:49
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If the president's motorcade pays, it implies acceptance that the C-charge is a charge for services not a tax, and that means they will have to pay the backlog of thousands of C-charges going back years. They have resisted this by claiming the C-charge to be a "tax" and therefore not payable by diplomats. Paying this charge negates that position.

- Conspiracy Factualist, London, 26/05/2011 13:46
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Rather cheap gesture politics.

- MiguelM, Old Isleworth, 26/05/2011 13:41
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What a boar. The Queen must have been so pleased.

- Bloke, Lambeth, 26/05/2011 13:41
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It is right that the congestion charge should be paid but it should be paid by we Londoners as he was our guest.

- Stephen C, LONDON, 26/05/2011 13:32
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>>A number of embassies in the capital insist the congestion charge is a tax.

Never mind embassies regarding it as a tax, we all do because that is what it is.

It's not as if any of the revenue has been spent on the roads or improving public transport.

- Adam, Harrow, UK, 26/05/2011 13:31
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If they don't pay we should secure the beast and place it in a compound and then destroy it if they fail to pay the charges. American's!!!

- Mark, Central London, 26/05/2011 13:19
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And for the Blond One's next wheeze: Recovering the fines for parking offences incurred by the Saudis and Nigerians...

Two hopes there mate; None and Bob

- West Ham Fan, Aldershot, 26/05/2011 13:18
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was he not invited to the uk by the queen? so did he pay his b&b at the palace too???

- Vince, London, 26/05/2011 13:16
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Nice one Boris. Londoners will be impressed if he does actually pay up

- modestly paid worker, London, 26/05/2011 13:03
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This was a State Visit, How mean and petty. The congestion charge IS a tax and should be scrapped, we already pay for roads with other taxes.

- Vince London, West London, 26/05/2011 12:59
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Good luck with that Bojo!...methinks you'll be waiting a while!

- Darren, London, 26/05/2011 12:46
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