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Taxi flagfall to increase by $2

The incremental charge per 200m under first-tier rates will also increase.

The Chief Executive in Council has approved a $2 increase in the flagfall charge for taxis, effective 14 July after statutory procedures.

The flagfall charge for the first 2km will rise to $29 for urban taxis, $25.5 for New Territories (NT) taxis, and $24 for Lantau taxis.

Additionally, the incremental charge per 200m will increase to $2.1 for urban taxis and $1.9 for NT and Lantau taxis. 

For second-tier distances, the incremental charge will rise to $1.4 for urban and NT taxis and $1.6 for Lantau taxis. 

Average fare increases will be 8.86% for urban taxis, 9.56% for NT taxis, and 10.92% for Lantau taxis. 

The waiting time charge will also be adjusted, but other additional charges will remain unchanged.

The government said it considered public acceptance, changes in taxi operating costs, incomes of taxi operators, and fare differentials with other transport modes in formulating these adjustmentrats. 

Data shows that whilst urban and NT rentee-drivers' average monthly net income in 2023 increased slightly compared to 2019 after inflation, Lantau rentee-drivers' net income decreased. 

Owner-drivers and rentor-owners also saw significant drops in net income compared to 2019. 

The taxi trade hopes the fare increase will boost drivers' incomes, attract new drivers, improve services, and enhance vehicle quality, promoting the industry's healthy development.

Meanwhile, the Transport and Logistics Bureau also announced that the Transport Department issued an invitation for applications for Taxi Fleet Licences on 12 April.  Results are expected to be announced by mid-2024, with successful operators required to commence operations by mid-2025.

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