PTC: Standardising taxi fares does not infringe Competition Act
02 Apr 2015|2,191 views
The Public Transport Council (PTC) has addressed concerns that taxi companies may violate the Competition Act by standardising the cab fare structure.
The PTC told The Straits Times, "Taxi companies will not fall afoul of the Competition Act in agreeing on the structure of certain taxi fare components, if they are doing so to comply with a legislative requirement".
New regulations, which are proposed by the Land Transport Authority (LTA) and the PTC on Tuesday, stated that the structure of certain taxi fare components such as surcharges and unit waiting time for metered rates are to be the same across all taxi companies.
Mr. Ang Hin Kee, Executive Adviser of the National Taxi Association, raised his concerns that allowing firms to set surcharges together may be anti-competitive.
The Ang Mo Kio GRC MP added that in the past, taxi companies were not allowed to discuss uniform charges, because that would infringe the Competition Act.
The PTC responded in its statement, "LTA and PTC are standardising some parts of the taxi fare structure to prevent taxi fares from becoming more complex for commuters in the future".
It added that as taxi fares have been deregulated, taxi companies can still charge different unit fares, booking fees as well as flag-down fares.
The Public Transport Council (PTC) has addressed concerns that taxi companies may violate the Competition Act by standardising the cab fare structure.
The PTC told The Straits Times, "Taxi companies will not fall afoul of the Competition Act in agreeing on the structure of certain taxi fare components, if they are doing so to comply with a legislative requirement".
New regulations, which are proposed by the Land Transport Authority (LTA) and the PTC on Tuesday, stated that the structure of certain taxi fare components such as surcharges and unit waiting time for metered rates are to be the same across all taxi companies.
Mr. Ang Hin Kee, Executive Adviser of the National Taxi Association, raised his concerns that allowing firms to set surcharges together may be anti-competitive.
The Ang Mo Kio GRC MP added that in the past, taxi companies were not allowed to discuss uniform charges, because that would infringe the Competition Act.
The PTC responded in its statement, "LTA and PTC are standardising some parts of the taxi fare structure to prevent taxi fares from becoming more complex for commuters in the future".
It added that as taxi fares have been deregulated, taxi companies can still charge different unit fares, booking fees as well as flag-down fares.
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