One of the main things highlighted in the Singapore Budget is the road tax rebate given to taxi companies. Since taxi companies are paying less on the road tax of their taxis, you would expect taxi fares to come down right?
Don’t hold your breath.
With Singapore in recession and figures showing less people taking taxis; taxi fares will still not go down. The reason for this is simple. Taxis –drivers need to pay daily rent on their taxis to the taxi companies. The rent ranges anything from $90 per day to $120 per day.
The recent road tax rebate given to taxi companies is about $50 per month per taxi. That’s nothing compare to the $90 rent the taxi companies collect per day! Since lower rental means less money for the taxi companies, the taxi companies will not lower the rent for their drivers.
So unless the daily rental comes down, don’t expect taxi fares to come down either. The taxi drivers can’t afford it.