The Chief Executive in Council has approved the New Territories taxi-fare adjustment, with an average rise of 4.95%, the Transport & Housing Bureau says. It will be implemented and gazetted on January 16.

The flagfall charge will rise from $13.5 to $14.5. The incremental charge will rise from $1.2 to $1.3 up to 8km, but drop from $1.2 to $1 from 8km onwards, letting passengers enjoy lower fares for longer distances for  trips that currently cost $73.5 or more.

The bureau said today the Government has taken into account all relevant factors, including changes in taxi operations' costs and revenue, public acceptability, the Transport Advisory Committee's recommended revised taxi-fare structure policy, and a comparison with the 5.46% urban taxi-fare rise implemented on November 30.

The approved rise maintains a balance between helping the taxi trade cope with operation difficulties and catering for consumer interests, it noted.

The fare-adjustment application was put forward by 16 New Territories taxi associations. New Territories taxi fares were last raised in 1997.

The average monthly net incomes of New Territories taxi rentee-drivers in the first half of 2008 was lower than that in both 1997 and 2004 in real terms, despite the $1 flagfall rise last February.

The Transport Department will distribute fare-conversion tables to New Territories taxi operators and remind taxi operators to display these tables and information inside taxis until taximeters have been calibrated to show the new fares.