The HK$10 increase was decided by arbitrators who threw out the government's rejection of the hike.

The government said it is disappointed and concerned about the impact of the ruling.

Current tolls are HK$40 for the Western, HK$20 for the Cross-Harbour and HK$15 for the Eastern tunnels.

In 2002, the New Hong Kong Tunnel Company, which manages the Eastern Harbour Crossing, applied for an increase. The Chief Executive-in-Council rejected the application.

In August 2003 the company sought arbitration and in January a HK$10 increase was agreed.

There will also be an average 66 percent rise in tolls for other vehicles, though the company has agreed to defer those for empty taxis until July 1 and minibuses until October 1.

The Environment, Transport and Works Bureau said although disappointed it will respect the decision.

The bureau will consult the taxi trade, the Transport Advisory Committee and the Legislative Council on whether the return tunnel toll surcharge for taxi users needs to be revised.

``There is no reason for such huge increases. This is crazy for it will start a toll fee hike,'' legislator Lau Kong-wah said. He fears the move will encourage other tunnel operators to raise tolls.

Legislator Andrew Cheng said the move will send motorists to other tunnels and that may worsen traffic congestion.

He said Financial Secretary Henry Tang had considered raising fees at the Cross-Harbour Tunnel while drawing up his forthcoming budget, but apparently has shelved the idea. However, Cheng now fears the government may think again about raising tolls.

A Kowloon Motor Bus spokesman said the increase will push up operating costs. New World First Bus and Citybus said the rise will cost them HK$18 million a year.

dennis.ng@singtaonewscorp.com