Hong Kong authorities offer taxi trade HK$2 rise in flag-fall rate for all cabs, undercutting industry proposal: sources

Industry is seeking to increase cab starting fees by HK$4.5 to HK$6 depending on taxi type, but sources say authorities waiting for sector’s feedback on counter-offer

‘The government has to consider [taxi industry’s calls], but must strike a balance based on affordability for residents,’ one source says

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Taxis queue up in Wan Chai. The industry was last granted a fare increase in 2022. Photo: Jelly Tse

Published: 3:26pm, 7 May 2024Updated: 11:05pm, 7 May 2024

Hong Kong authorities have countered a taxi trade proposal to boost fares by offering a lower increase of HK$2 (26 US cents) for all flag-fall rates rather than the up to HK$6 rise sought by the industry, the Post has learned.

Two sources said on Tuesday that authorities had told members of the Executive Council about the new proposal, but it would be subject to industry feedback before the key decision-making body could approve it.

Under the government’s counterproposal, the flag fall for all taxis will be increased by HK$2, a far cry from the industry’s hopes of a HK$4.50 to HK$6 rise.

That would bring the flag-fall charge to HK$29 for red cabs in urban areas, rather than HK$32 as proposed by industry chiefs.

“The industry has been requesting a bigger increment since 2019. The government has to consider their calls, but must strike a balance based on affordability for residents,” the first source said. “Any flag-fall rate below HK$30 should be acceptable.”

Under the counterproposal, the flag-fall fee for green taxis in the New Territories would be HK$25.50 and HK$24 for blue ones on Lantau Island, compared with the sector’s suggested HK$28 rate.