SHENZHEN Municipal Transport Bureau is planning to reduce taxi tariffs this year, Guangzhou-based Southern Metropolitan News reported yesterday.

　　But the new pricing standard needs further discussion with the city's price bureau, which is also positive about a fare cut.

　　At 12.5 yuan flagfall within three kilometers, Shenzhen's taxi charges are the most expensive on the mainland. The per-kilometer charge is 2.4 yuan.

　　Based on the initial calculation by transport and price authorities, the occupancy rate of Shenzhen taxis is around 70 percent. Most taxis run 24 hours a day in two shifts.

　　Unit costs were reduced in recent years leaving more room for price adjustment, according to a joint research by the two departments.

　　The price adjustment will cover flagfall, per kilometer rate, night fare and luggage charge. The new charges have not been decided according to the report.

　　The two departments have discussed a fare cut since 2000. The lack of competition among taxi companies has been an obstacle for fares adjustment, a price bureau official told the News.

　　According to the transport bureau, the number of taxis in Shenzhen has been kept at around 8,505, since the municipal government stopped issuing new taxi licenses in 1993.

　　The bureau said the price adjustment would help promote taxi business. Officials believe a fare cut would attract more people to take taxis. Residents and passengers to Shenzhen have complained of high taxi fares.

　　The taxi sector also needed to improve service and enhance management efficiency by introducing more competition, the transport bureau said.

　　(Han Ximin)