Taxi fares increase in Tokyo, Kanagawa for first time in 10 years

Taxi fares were increased Monday in Tokyo and Kanagawa Prefecture. The first price increase since April 1997 raised the flag-down fare for the first 2 kilometers to 710 yen from the current 660 yen. With fares staying flat for some 10 years since the consumption tax rate was raised to 5% from the previous 3%, taxi drivers have been forced to settle for lower wages and poorer work conditions amid a prolonged recession that came to an end only around 2002.
Deregulation that encouraged more firms to enter the taxi industry played a role in lowering the living standard of taxi drivers. As a result of the revised fare tariff, the nighttime charges between 10 p.m. and 5 a.m. will become 20% higher than regular rates while the surcharge is now 30% for hours between 11 p.m. and 5 a.m.
Adjusted for charges for travel distances over and above 2 km, which vary from one area to another, the rate of fare increase translate into 7.2% in Tokyo's central area, or the capital's 23 wards, 7.9% in the Tama area in western Tokyo and 7.7% in the Keihin area encompassing such major cities as Yokohama and Kawasaki.
Fare increases in other areas of Japan are expected to be endorsed by the end of the year.