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Taxi fees: to cut or not to cut?
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Song Yingwen
IN early April over 400 taxis which had been in operation for over five years were ordered to reduce their meter charges by the pricing department, a move widely applauded by passengers who had long complained of overcharging. Indeed, since the taxi rates in Shenzhen are very high compared with most other cities, many are calling for fares to be lowered on all taxis, not just older ones.
But is there any possibility for such reduction? What do the taxi companies think of this and what are their concerns and problems?
Tan Xianzhong, deputy chief secretary of the Shenzhen Taxi Association
The Taxi Association is of the opinion that it would be the best to keep price where they are. But if there have to be some adjustments, as we have learned, there is room for small reduction.
A decrease of 1 or 1.5 yuan in the starting price is about all that is possible right now. But greater room for reduction or cancellation of the surcharges levied after 11pm, whic accounts for 30 per cent of the starting price. We can even permit passengers to keep the donation levy, which is collected by taxi companies on behalf of a foundation dedicated to helping poverty-stricken areas. But that's all that the Taxi companies can afford.
From the government's point of view, decisions must comply with the majority will and interest. But losses resulting from price cuts should not be born by Taxi companies only. That will put them in a difficult situation. If there have to be adjustments in taxi fees, the government should lower some taxes and administration charges as well, so that Taxi companies can reduce their operating costs.
Zhao Wenxing, general manager of the Shenzhen Taxi Company under the Shenzhen Xihu Enterprise Development Co.
Being a businessman, I am against any move to reduce taxi charges. Profit is my biggest concern. The current taxi charge is quite fair.
It's not fair to compare taxi charges in Shenzhen with those in other cities merely by the fees. The local residents' living standard and the operating costs of taxi firms should also be taken into consideration.
The average income per capita in Shenzhen, according to data released by the National Statistics Bureau, is higher than any other city in China. Therefore the standard of consumption in Shenzhen is relatively higher.
Operating cost in Shenzhen is higher than other cities. With regards to the taxi insurance fee, a premium of 5,000 yuan is enough to cover all the insurance types for a car in the inland cities. But in Shenzhen, you can't even cover the basic insurance with twice that. It is of the same situation in labour cost, management charges and taxes.
We should let the market decide whether the charges should be reduced or not. They are designed to meet the needs of people of higher income. If the day comes when people choose to take other means of transportation other than taxis, the right time for adjusting price will have arrived.
Wang Weiqi, resident
Taxi charges in Shenzhen should be reduced.
Yes, the consumption standard in Shenzhen in other cities, and it's understandable that the taxi charges might be higher. But it doesn't mean that the current rates are reasonable, or that there is no room for adjustment. The point is how to make the adjustment both acceptable to both the consumer and taxi companies.
Beijing and Shanghai are big cities and the consumption standards there are not far from that of Shenzhen. But people there spend less on taxi than Shenzheners. Why? Not because they don't take taxis, but by having all the taxis there divided into different categories of different charge rates, people can make choices based on their financial situation. This is a practical way to solve our problem.
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