Home Hong Kong Exco approves HK$2 rise in taxi flagfall rates

Exco approves HK$2 rise in taxi flagfall rates

Hong Kong taxi 1

Taxi fares are set to go up after the Executive Council approved increases for cabs on Tuesday, but it was far from the jump the trade had asked for.

The industry had suggested a HK$5 increase in the flagfall for urban taxis, and set the initial charges for other cabs at HK$28.

Instead, the flagfall for urban taxis will increase from HK$27 to HK$29, while the starting rates will be HK$25.5 in the New Territories and HK$24 on Lantau.

The incremental charges will also be raised, with a 20-cent increase per metre jump for the first-tier distance after flagfall for urban taxis. Passengers of green and blue cabs will see the incremental rates after flagfall rise from HK$1.7 to HK$1.9.

For second-tier distances, there will be an increase of 10 cents for all three types of taxis.

The new fares are expected to take effect from July 14 after negative vetting by the Legislative Council.

A government spokesperson said it is important to review taxi fares to ensure a stable supply of services to cater for passengers’ needs.

“The taxi trade is facing genuine difficulty in maintaining the financial viability of its operation at the current taxi fare level,” a statement read.

“The taxi trade hopes that an increase in taxi fares would raise the income of front-line drivers and attract more newcomers to join the industry, while at the same time encouraging taxi operators to improve their services and invest more in new facilities, thereby enhancing the overall taxi service quality and fostering the healthy development of the trade in the long run.”

The government also noted the approved increases were lower than the levels proposed by the taxi trade, adding the fare hike would “inevitably lead to higher transportation expenses for passengers”. (RTHK)

Taxi charges last went up in July 2022