Feedback mixed as taxi fares could rise 17pc

Michael Shum

Taxi fares could go up as much as 17 percent as the industry has applied for a fare raise.

The proposal includes raising the flag fall charge to HK$32 from the current HK$27 for urban taxis, as well as increasing the flag fall charge for New Territories taxis to HK$28 from HK$23.5.

Lantau taxis would see the largest increase, with the flag fall charge rising by HK$6 to HK$28, from HK$22.

The industry is looking to raise the fare increment for every 200 meters after the first two kilometers.

The proposed increment is 20 HK cents, making it HK$2.10 for urban taxis, HK$1.90 for New Territories taxis and Lantau taxis would see a smaller increase of 10 HK cents to HK$1.80.

The industry has also suggested frequent fare increases during waiting time, proposing a change from one fare increment every 60 seconds to one increment every 45 seconds, but this would only apply to urban taxis.

Additionally, the surcharge for luggage placed in the trunk would increase by HK$1 to HK$7, and the additional charge for a pet would rise to HK$7 from HK$5.

The Transport and Logistics Bureau submitted a document to the Legislative Council's transport panel claiming that red and green taxis revenue had increased after accounting for inflation.

However, blue taxis experienced a decline of 2.7 percent in revenue.

The document states that "operating expenses for taxi owners rose significantly between 2019 and the previous year, while taxi rental rates were lower than those in 2019."

The bureau added: "The government, in considering the fare increase proposal, will take into account the opinions of the Legislative Council's transport panel and the Transport Advisory Committee."

The objective is to strike a balance between maintaining the financial viability of taxi operations and public acceptance.

Despite the industry's request for a fare hike, some drivers have expressed skepticism. A cabbie named Cheng believes that the increase will provide no help but will serve as an excuse for owners to raise rent.

"We already have very few customers, raising the fare will make the situation worse," he said.

Poon, another driver, said: "Business has already been challenging since the pandemic and from a driver's perspective we hope [everything] can remain the same."

A frequent passenger, Wong, said the potential fare increase does not bother her. "But if the fare hike is approved, I will simply not tip the cabbie after," she said. "Yes, it is getting more expensive to take a cab, but I have no choice other than to take one."

A tourist from Hunan agreed on increasing the fare, citing Hong Kong's reputation as a city of high consumption. However, the tourist noted that such an increase would be unacceptable in their hometown.

A Hong Kong resident named Leung disagreed.

Given the current economic slump, she believes a fare increase higher than the inflation rate is inappropriate. While acknowledging the improvement in taxi services, Leung said she would avoid taking a cab unless it is absolutely necessary.

"We are in an economic slump right now, and you are proposing a hike higher than the inflation," she said. "I have to admit that taxi services have improved, but I will refrain from taking a taxi unless it is extremely necessary."

michael.shum@singtaonewscorp.com

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