New year new fare: Taxi industry proposes HK$32 flagfall and strives for approval in Q1

Hailing a taxi may become even pricier in the new year as the industry is proposing a new round of fare increases, including raising the current HK$27 flagfall for urban taxis to HK$32. 

The industry also proposes raising the HK$23.5 flagfall for New Territories taxis to HK$28. 

The fare jump for every 200 meters after the first two kilometers is also proposed to be increased by 20 HK cents, to HK$2.1 and HK$1.9 for urban and New Territories taxis respectively. 

The industry said they will meet with representatives from the Transport and Logistics Bureau to table their proposal in hope of obtaining approval in the first quarter of this year. 

Industry leaders said taxi fares have lagged behind inflation rates for many years and only saw a HK$5 increase over the past nine years. This new round of fare adjustments is expected to help drivers recover “skyrocketing” insurance fees, they added. 

It is understood that the first proposal abandoned by the sector suggested that the flagfalls for both urban and New Territories taxis increase by HK$6, to HK$33 and HK$29.5 respectively, without any changes to the fare jump. 

Chow Kwok-keung, chairman of the Hong Kong Taxi and Public Light Bus Association, said to his understanding the Transport Department has completed the assessment report. 

After obtaining the final approval from the department, the proposed fare increases will then be vetted by the Executive Council and the Legislative Council. 

Chow continued that taxis are already the public transport section that sees fewer fare increases, when compared to the MTR which increases its fares almost every year as well as franchised buses, of which the fares jump higher than 10 percent each time. 

Chow acknowledged the public’s criticism of cabbies’ bad attitudes in general, but believes cabbies’ incomes should be improved so that they can provide better services to satisfy citizens’ expectations. 

Ng Kwan-shing, chairman of the Taxi Dealers & Owners Association Ltd, pointed to skyrocketing insurance fees. The industry also faces difficulties in attracting new blood and cabbies are constantly issued parking tickets, he added. 

The industry as a whole does not make that much money after canceling out the costs, Ng noted. 

The Transport Department said it is now reviewing the proposed fare increases and considering relevant factors, including the public’s acceptance level, operation costs, the overall supply and demand situation, and the gaps in fares between taxis and other public transport.