New taxi fares went into effect on Sunday with the flagfall of red urban taxis increasing from HK$27 to HK$29, but some passengers say it is not the right time to raise prices, which also went up for green and blue taxis.

For green New Territories taxis, flagfall went from HK$23.5 to HK$25.5, while the fares went up HK$2 for blue Lantau taxis to HK$24.

After flagfall, the incremental charges for each 200 metres travelled under first-tier rates have also gone from HK$1.9 to HK$2.1 for urban taxis and from HK$1.7 to HK$1.9 for New Territories and Lantau taxis.

Second-tier distance charges are up from HK$1.3 to HK$1.4 for urban and New Territories taxis, and from HK$1.5 to HK$1.6 for Lantau taxis.

A woman surnamed Ko told RTHK that now is not the right time to be increasing fares.

"The economy isn't doing well right now, and suddenly they are increasing the fare by so much. The fares keep going higher and higher. Taxi drivers actually told me they don't want the fares to go up. They said if the fares go up, so does the rental costs for their vehicles so they don't really profit from this," she said.

Another woman, surnamed Cheung, said she does not mind the fare increase, but hopes that taxi services can improve. She said some cabs smelt of cigarette smoke and drivers had been rude to her.

A man surnamed Tong said people who take taxis frequently will not mind the fare increase, adding that he has had good experiences with taxis.

Meanwhile, a taxi driver surnamed Choi estimated that the fare increase could earn him HK$5 to HK$10 more for every HK$100. He said he does not think business will take a hit because of the fare hike.

"Some people rely on taxis like those who are in a hurry or people who are immobile. I don't think they will mind that extra dollar or two," he said.