The flagfall for Hong Kong’s urban taxis could rise by HK$2 to HK$29, local media outlets have reported citing sources.
Authorities are currently considering the fare increase, according to Sing Tao and Ming Pao, factoring in concerns such as operating costs and public acceptance.
Representatives of the taxi industry earlier applied to raise the flagfall for the city’s urban, New Territories and Lantau taxis. The industry proposed a HK$5 hike for urban taxis, which would take initial fares from the current rate of HK$27 to HK$32.
Sing Tao reported that the government was unlikely to allow the urban taxi flagfall to reach HK$30, and that an increase to HK$29 was more likely.
Industry representatives applied for the initial rate for New Territories taxis to rise from HK$23.50 to HK$28, and for Lantau taxis to increase from HK$22 to HK$28.
Starting rates for New Territories and Lantau taxis are also reportedly expected to rise by HK$2.
The last time taxi fares increased was in July 2022, when urban taxi starting fares rose from HK$24 to HK$27.
A taxi industry representative told local media outlets that the reported rise was lower than what many were eyeing, and that drivers had no choice but to “reluctantly accept” it.
Chow Kwok-keung, the chairperson of the Hong Kong Taxi and Public Light Bus Association, said on an RTHK radio show on Tuesday that taxi owners were facing higher costs due to an increase in insurance fees.
Rising insurance fees translate to more expensive rent for drivers that do not own their own taxis and have to rent vehicles.
“During non-peak hours, if we have to wait for a long time [for a customer] and earn only around HK$20 – that cannot even buy breakfast or lunch,” he said in Cantonese.
Chow added that relying on the government to approve flagfall increases was the only way drivers could boost their income. He also questioned whether authorities could tie flagfall hikes with increases in the minimum wage, which local media outlets reported last month was expected to rise by 4.5 per cent to HK$41.80.
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