The proposal of raising short-haul fares and lowering long-haul fares is in line with the new taxi fare structure policy proposed by the Transport Advisory Committee, the Transport Department says.

The new fare structure can better reflect the actual market situation, and can effectively reduce the room for offering discounts in the trade.

In response to the claim by some urban taxi groups that incomes of some drivers have fallen because of the new mechanism, the department today said the latest situation of taxi operation is being monitored and it will continue to communicate with the trade.

The department will hold another meeting on the New Territories taxi fare adjustment application with the concerned associations tomorrow.

The application will be submitted to the Chief Executive in Council for approval after lawmakers and the Transport Advisory Committee have been consulted.

The Government will draw reference to the practice and experience of other cities and study appropriate and effective measures, with a view to implementing the policy taxi fares are charged and paid according to the meters and ensuring market order is maintained.

The department will collect views from the taxi trade through conferences and the situation will be reviewed in six months.