Decision on increasing taxi fares expected soon

Transport Department has proposed slab rates based on the cost of the car

The State government is expected to take a decision in the coming days on a proposal to hike fares of app-based taxis and fix a minimum price for travel to deter unfair competitive practices.

Transport Department officials said their proposal, which was given a few weeks ago to the government, revises the slab rates of taxi services based on the cost of the car.

Hitherto, the government had fixed price slabs based on the type of car. For instance, for AC sedans, it was ₹19.5 per km, while for hatchbacks, it was ₹14.5 per km.

Under the proposed slabs, cabs that cost less than ₹5 lakh can charge between ₹11 and ₹22 per km. Those that cost between ₹5 lakh and ₹10 lakh can charge between ₹12 and ₹24 per km, and taxis in the ₹10 lakh to ₹16 lakh range can charge between ₹16 and ₹32 per km. The highest bracket — between ₹25 and ₹45 per km — is for taxis that cost more than ₹16 lakh.

According to officials, the rates would put an end to the massive discounts offered by app-based taxi aggregators to lure customers towards their service as well as place a cap on surcharges that passengers have to pay while commuting during peak demand hours.

“We had given the proposal to the State government, and once they give the order, it can be notified. So far, there has not been any communication,” said B. Dayananda, Transport Commissioner. However, sources said the decision would most likely be taken next week.

‘No way to enforce new slabs’

Hamid Akbar, general secretary of the Karnataka City Taxi and Operator (Controller) Association, said the proposals and notifications would be in vain as there was no way to enforce them. “Without a visible meter, there is little chance for the customer to know whether the charges exceed these limits. Moreover, the slabs introduced will add more confusion on the rates,” he said. Similarly, K. Radhakrishna Holla from Bangalore Tourist Taxi Owners’ Association, asked how the authorities would enforce the rules when most cabs were outside regulatory permits. “NITI Aayog had even asked for the removal of minimum and maximum fares to increase competition between taxi operators. This would have eventually benefited the consumers,” he said.