The announcement that the service tax net would now be extended to include radio cabs raised doubts over a possible hike in fares.
However, the most prominent call taxi services in the city said it was unlikely because they were already remitting service tax, and market prices had stabilised.
With only a few radio taxis likely to be brought into the service tax net, call taxi drivers said it was unlikely that any one service would want to be seen charging above the others.
“There are very few radio taxis in the city. Most of the taxi services have become call taxis and act as lead generation providers for private players. We are already remitting service tax. The budget announcement might not impact the businesses cost-wise and there won’t be any fare revision because of this,” explained V. Balakrishnan of Friends Track Call Taxi and Cabs.
