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Taxi drivers' incomes protected after price hike


13:47, April 17, 2013

The impending adjustment of Beijing's taxi fare system has gripped drivers with fears that more franchise fees may be levied by their companies. However, authorities have assured taxi drivers Tuesday that the increased income will all go into their pockets.

A recent statement from the Beijing Commission of Transport confirmed that taxi fares, which have remained unchanged for the past seven years, will rise soon. It is expected that taxi fares in Beijing will be raised from the current 10 yuan ($1.62) to 15 yuan for the first three kilometers, and the charge will increase from two yuan to 2.4 yuan for every additional kilometer.

Taxi companies must not rob drivers of their surging incomes or charge higher franchise fees, said Li Xiaosong, deputy director of the commission.

Taxi companies should also offer incentives, subsiding drivers in rush hours, during nights and harsh weather, he added.

Based on national standards, taxi drivers currently pay a monthly franchise fee of 5,175 yuan ($838). The companies then give back about 2,500 yuan in allowance and social security expenses.

In a bid to improve taxi services in the capital, more measures will be revealed by the end of June, sources from the commission said.

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