Taxi fare rise to take effect from July 14

The Chief Executive in Council on Tuesday (May 14) approved an increase to the flagfall charge in taxis of HK$2, as well as increases to incremental charges based on distance traveled. Upon completion of statutory procedures, the new fares are expected to take effect from July 14.

The flagfall charge for the first 2km will rise from HK$27 to HK$29 for urban taxis, from HK$23.5 to HK$25.5 for New Territories (NT) taxis, and from HK$22 to HK$24 for Lantau taxis.

Beyond the flagfall, the incremental charge for each 200m travelled under first-tier rates will rise from HK$1.9 to HK$2.1 for urban taxis, and from HK$1.7 to HK$1.9 for NT and Lantau taxis.

The incremental charge for second-tier distances will rise from HK$1.3 to HK$1.4 for urban and NT taxis, and from HK$1.5 to HK$1.6 for Lantau taxis.

The average rates of fare increases are 8.86%, 9.56%, and 10.92% for urban, NT, and Lantau taxis,, respectively.

There will also be adjustments to the charge for waiting time as a result of the increase in incremental charges after flagfall, while the other additional charges will remain unchanged.

The Government said it gave due consideration to factors including public acceptance, changes in taxi operating costs, the incomes of taxi operators, and fare differentials between taxis and other modes of public transport when formulating the taxi fare adjustments.

According to operating data, while urban and NT rentee-drivers' average monthly net income in 2023 increased slightly compared with 2019 levels after netting out inflation, Lantau rentee-drivers experienced a drop in average monthly net income.

Meanwhile, owner-drivers' and rentor-owners' average monthly net income in 2023 dropped significantly compared with that of 2019.

The taxi trade expressed hope that the fare increase would raise front-line drivers' incomes and attract more people to join the industry. It also said it hopes the adjustments will allow taxi operators to improve their services and invest more in their vehicles, thereby enhancing the overall quality of taxi services and fostering the trade's healthy development.

Separately, the Transport & Logistics Bureau highlighted that the Transport Department invited applications for Taxi Fleet Licences on April 12, to announce the results in mid-2024. Successful taxi fleet operators must commence operation no later than mid-2025.