Taxes Take Toll on Taxis

Taxi fares in Aberdeen could rise for the first time in three years due to increased VAT and fuel costs.

Aberdeen Taxi Group have called for a 5% hike in fares, to reflect a drop in profits caused by increased running costs.

Chairman of the group, Russell McLeod, said: “Aberdeen taxi drivers are not looking to get back to where we were, which would need at least a 10% increase, we are only looking to slow the erosion to our earnings.”

The increases are being discussed at a meeting of Aberdeen City Council’s Licensing Committee at 2 o’clock this afternoon.

If approved, the basic tariff will be set at £2.40 for the first 950 yards instead of the first 1000 yards, with a 20p charge for every additional 180.5 yards instead of 190 yards.

Waiting time costs could also increase from £20 to £23, and passengers being picked up at Aberdeen train station may have to pay a £1 starting cost rather than 50p.

Fuel prices have risen by 15% since the last review of prices in March 2008.

Mr McLeod added that even if the price increases are passed, fares in Aberdeen will remain lower than those in Aberdeenshire.

An Aberdeen Rainbow City taxi driver said: “We need at least a 5% increase, with fuel costs, servicing and MOT prices going up. It may cause a lull in trade for a few weeks, but business will pick up again.”