Taxi industry wants flagfall raised to $32

Taxi flagfall could rise to HK$32 - a jump of HK$5 - if the taxi sector has its way, as it pointed to inflation and the doubling of insurance fees.

For New Territories taxis, flagfall could increase to HK$28 - a rise of HK$4.5.

The industry is also asking to raise the subsequent incremental charges by 20 HK cents for both red urban taxis and green New Territories taxis.

If approved, the new fares for red taxis would be HK$2.1 before the total charge reaches HK$93.5 and HK$1.5 after it reaches HK$93.5, while new fares for green taxis would be HK$1.9 and HK$1.5 before and after the total charge reaches HK$74.5.

Taxi fares were last raised in July 2022, when red taxis' flagfall rose by HK$3 to HK$27. Subsequent incremental charges were raised by 10 to 20 HK cents, depending on the distance of a journey.

Hong Kong Taxi & Public Light Bus Association had applied for a rise in flagfall of HK$6 in November 2022 but their application failed. Chow Kwok-keung, chairman of the Hong Kong Taxi and Public Light Bus Association, said raising fares is the consensus reached by the taxi industry, as it hoped to catch up with inflation.

He added the flagfall has only increased by HK$5 in the past nine years. "Bus companies have increased fares three times in the past two years, with the minimum rise of HK$1 for short-distance commutes. Public transport, especially those providing short-distance services, have increased their fares," Chow said.

He hoped the public can understand the taxi sector's difficulties as he explained it also needs to make up for the near double rise in insurance fees.

"It is the illegal platform and unfair business environment that make the industry face significant challenges," he said. "Our insurance fees are about tens of thousands of dollars while those of the illegal vehicles carrying passengers are just a few thousands. Their presence makes life in the taxi industry harder."

Chow hoped that the association's application would be approved in the first quarter of this year. He also suggested that future fees be linked to the salary increase of civil servants that are automatically adjusted each year.

It is understood that the Transport Department has completed an evaluation report on the fare increase plan. After receiving final approval, it will be submitted to the Executive Council and the Legislative Council for review.

Compared to the MTR which raises its fares every year and buses that frequently increase their fares by more than 10 percent, Chow said taxis are already the means of transport with fewer fare increases.

He admitted there is generally a negative attitude towards taxi drivers' service, but the sector believed their income should improve first before its service can meet public expectations.