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Timmy Sung

The taxi trade is considering an application to raise fares by almost 10 per cent - just over a year after they were last increased.
Wong Po-keung, chairman of the Hong Kong Taxi Owners Association, said he wanted flag fall increased by HK$2, meaning the minimum fare for urban taxis would be HK$24.
Wong is also proposing that for every 200 metres after the first 2km, passengers are charged HK$1.70 - a rise of 10 cents.
The government last approved an application to increase urban taxi fares in September 2013, with the new charges coming into force in December 2013.
But Wong argued that accumulated inflation since the trade filed the application in early 2013, was some 9 per cent, and said the new increase was "reasonable" as it would take the government eight to nine months to process the application.
He added that another reason for the increase was to raise the income of cab drivers in an effort to attract younger people to join the industry.
Taxi drivers on average earn HK$55 an hour, compared with HK$65 for other drivers in the transport sector, according to a study the association commissioned recently.
Wong, who is also a taxi driver, said he was advocating letting drivers keep two thirds of the additional income generated from the increase, as drivers had long complained the increased income was eaten up by rises in car rental charges.
"I hope owners would also agree to observe how the business goes for two or three months before deciding how much it will raise the car rental cost," Wong said.
He revealed that a meeting would be held later this month with around a dozen taxi groups to finalise the details, and the application would be submitted to the Transport Department at the end of the month at the earliest.
But one taxi drivers' group warned cabbies would not see a rise in their income if fares went up.
"Owners are going to increase the daily rental after the fare hike, and drivers are not going to benefit much," said Chan Moon-yau, vice-chairman of the City Taxi Owners and Drivers Association. "Drivers' income has increased by some HK$30 to HK$40 [per shift] in recent months because the price of liquefied petroleum gas (LPG) had dropped. Owners are eyeing that money."
 


Hong Kong taxi industry wants 10 pc fare rise to cover inflation

The taxi trade is considering an application to raise fares by almost 10 per cent. Photo: Jonathan Wong


News

Hong Kong

But one industry group says increase will benefit owners, not hard-up drivers


The taxi trade is considering an application to raise fares by almost 10 per cent - just over a year after they were last increased.
