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The government has decided to proceed with the new increased taxi fare announced on March 19, announced Minister in the Prime Minister’s Department Nancy Shukri in a report by Bernama.

The new taxi fare rates use the same RM3 flag down rate in the Klang Valley (RM4 in Penang) as before the hike, but time and distance rates have now been increased to cost 25 sen for every 200 metres or and/or every 36 seconds. The flag down rate for Teksi1Malaysia (brown Proton Exora) has been revised to RM4, with a distance cost of 30 sen for every 200 metres.

There was some confusion over the new rates as the news broke over the weekend that the Cabinet instructed SPAD to postpone the new rates because it’s timing was unsuitable, being close to the scheduled implementation of GST on April 1. Taxi drivers were not happy about this, threatening to strike.

Quite a few taxi drivers said they would be charging the new rates anyway because they had already spent time and money to recalibrate their meters.

It’s only good news for the taxi drivers though, as the express bus fare hike that was announced at the same time will be postponed for the moment.