The Chief Executive in Council has approved the flagfall charge for urban taxis to rise from $16 to $18, and Lantau taxis from $12 to $13, while longer distances will have lower fares, the Transport & Housing Bureau says.

For trips up to 9km the urban taxis' incremental charge will rise from $1.40 to $1.50, but fall to $1 from 9km onwards, or when the total fare reaches $70.50. This will mean there will be a fare cut for trips currently costing about $85 or more. Trips of about $100 at present will be cut 4.5% in fares, and will reach about 20% for $300 trips.

The incremental charge for Lantau taxis will rise from $1.30 for trips within 20km, but will stay at $1.20 beyond the distance. The average fare rise rate is 7.67% for Lantau taxis and 7.8% for urban taxis. The new fares will be implemented November 30.

The bureau said today the Government has considered all factors, including changes in costs and revenue of taxi operations, public acceptability and affordability, and the Transport Advisory Committee's proposed revised taxi fare structure policy.

The approved adjustments maintain a balance between helping the taxi trade to cope with operation difficulties and catering for consumer interests, thus restoring a level-playing field for taxi operators and benefiting passengers.

Figures showed the average monthly net incomes of Lantau taxi rentee-drivers and owner-drivers early this year were lower than in 2004 by 3.2% and 10.4% in real terms.

For urban taxis, rentee-drivers' average monthly net income in early 2008 was still 7.7% less than in 2004 in real terms despite the $1 flagfall fare rise in February. Owner-driver's also fell 3.5% in real terms.

Related law amendments will be tabled at the Legislative Council on October 8.