Hong Kong to consider public approval, drivers’ income as industry seeks to raise urban taxi flagfall to HK$32
Hong Kong Free Press
The Hong Kong government will evaluate proposed hikes to taxi fares based on factors including public acceptance and drivers’ income, as the taxi industry seeks to raise flagfall for urban taxis by 18 per cent.
Lawmakers and government officials will discuss the proposed taxi fare increase during a Panel on Transport meeting on Friday, according to the Legislative Council website.
The industry proposed in January raising the flagfall for taxis, citing rising costs and competition from ride-hailing services, which remain illegal without a permit.
Drivers have applied to increase the flagfall for urban taxis from HK$27 to HK$32, more than 18 per cent. Meanwhile, flagfall for New Territories taxis could increase from HK$23.50 to HK$28, while the city could see Lantau taxis’ flagfall rise from HK$22 to HK$28.
Hong Kong Taxi and Public Light Bus Association Chau Kwok-keung told local media outlets in January that flagfall had only increased by HK$5 over the past nine years.
Since December 2013, when the flagfall for urban taxis rose to HK$22, fares have risen twice, including most recently in July 2022, when fares increased from HK$24 to HK$27.
‘Financial feasibility’
In the Legislative Council document, the Transport Department said authorities would evaluate the proposed fare increases based on factors including public acceptance of the new fares and the “financial feasibility” of taxi operations.
According to information provided by industry representatives, taxi drivers who owned their vehicles earned less in 2023 than in 2019, before the Covid-19 pandemic began.
Urban taxi drivers who own their own vehicles earned around 13 per cent less, while drivers of New Territories and Lantau taxis earned around 10 per cent less, factoring in inflation.
Taxi drivers who rented their vehicles out saw their income fall between 30 and 50 per cent last year, compared to 2019.
Urban taxi drivers who rented their vehicles, however, recorded a 6.2 per cent increase in income, while those driving New Territories and Lantau taxis saw income rise by 0.8 per cent and fall by 2.7 per cent, during the same time frame.
For taxi owners, operation costs have shot up largely due to the increase in insurance fees, according to the Legislative Council document.
The Transport Department said it would consult lawmakers on the Panel on Transport as well as the Executive Council on the fare increases.
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