Unjustified Increases
The usual aftermath of elections: everything increase. Taxes, public transport fares, housing, cars, et cetera. Today, I am concerned about the hottest topic on the streets. Taxi fare increase.
Many Singaporeans including the Taxi drivers themselves, felt that the raise was unreasonable. Although its only a $0.10 hike of the starting fare, it is the increase in time-distance (and acceleration) increment that kills. Many are trying to avoid getting on a cab if they could.
So who is to be blamed for the hike? The transport companies? The government? I would say, both. And I am going to justify my claim on why they are the main contributors to the hike.
Firstly, the transport companies justify their refusal to decrease cab rentals because of their cost. The costs include, $5,100 in diesel tax and $1,200 in road tax annually. What the hell is the diesel tax for? Didn’t the Singapore Police Force said that diesel is a cleaner, greener alternative to petrol? It offers higher mileage too. Since thats what they say, then why is the government charging a ridiculous tax for being green? The government is just trying to get money from every single possible way.
The cab companies have tried to justify their claim by blaming the taxes, but i still cannot agree with them. Every year, cab companies, especially ComfortDelgro, make tons of money. This government linked company is the second largest transport operator in the world. If smaller companies like Smart can provide cabs-with lots of frills, compared to Comfort cabs- for $75 a day, why can’t they do it? I can think of reasons why Comfort is coming up with a fare hike. Firstly they don’t have to decrease their rental fees. Secondly, cab drivers pay a commission on the amount earned. Therefore, increase in the fares, also increases the income of Comfort. Drivers also use less subsidized fuel for the same amount of fare. What a perfect plan. Killing so many birds with a stone.
Lastly, some cab drivers are also at fault. It is a fault linked to the cab companies. In Singapore, fare increment is based on time-distance (and acceleration, although cab companies did not say), this has led to some cabbies who purposely accelerate even though there is no need to, so as to push the fare up. The cost to accelrate quicker is lesser than the sale. So they are making a profit by doing that. So next time when you see a cabby accelerating even though the traffic light ahead is red, you know what he is doing.