Taxi drivers warned a lot riding on fare hikes

It will be a disappointment for Hong Kong if taxi services do not improve following fare increases on July 14, said Legislative Council member Peter Koon Ho-ming.

Flagfalls will increase by HK$2 to HK$29 for urban taxis, HK$25.50 for New Territories taxis, and HK$24 for Lantau taxis.

Additional charges after the flagfalls will also go up. For urban taxis, the first two to nine kilometers will be charged at the rate of HK$2.10 per km, 20 cents higher. Longer journeys than that and the rate will be from HK$1.30 to HK$1.40 per km.

The fare increases came in a Legco subcommittee meeting yesterday in which Koon warned that a failure to improve services would "damage Hong Kong's reputation."

He suggested implementing tiered fares for different vehicle models and relaxing license requirements to attract younger drivers.

Transport Commissioner Angela Lee Chung-yan acknowledged that fare increases alone could not solve taxi issues - service quality must also be improved.

She said the government is considering introducing premium taxi fleets to provide luxury and high-quality service, which can help attract more drivers.

Lee said that after lowering the commercial vehicle license requirements, the number of people taking taxi driver exams increased 15-17 percent last year compared to 2019.

She believes premium fleets can further improve the industry's image and draw more newcomers.

Lee said the department has received 15 applications for new taxi fleet licenses and plans to announce the results next month.

It is also studying mandatory installation of surveillance cameras and electronic payment systems in taxis.

It will carefully review these applications and aim to announce the results next month so that the taxi fleets can start operating as soon as possible, she said.

There are plans to consult the industry on these matters this year.

Legco members expressed hope that the government will expand the requirement for mandatory installation of electronic payment systems to all taxi licenses, but the government insists that it can only be included in fleet licenses.

Steven Ho Chun-yin, who represents the agriculture and fisheries sector, asked why the Transport Department refused to adopt measures that help the industry build their image.

But the government says "current taxi licenses cannot accommodate additional conditions, which can only be included in the new fleet licenses."