Chicago to charge taxi companies with congestion tax accused of hurting low-income people

BEIJING, Nov. 27 (Afp) – The Chicago City Council on Tuesday approved a proposal to address traffic congestion by increasing taxes on certain taxi services, as the city and taxi service companies accuse each other of hurting low-income passengers,media reported.

Chicago to charge taxi companies with congestion tax accused of hurting low-income people

Lori Lightfoot, the city’s first African-American mayor, plans to increase the city’s ride-sharing tax and lower the ride-sharing tax, as well as impose a new surcharge on weekday taxi rides in the downtown area to raise $40 million for the fiscal year that begins Jan. 1.

Ride-hailing companies Uber and Lyft say the move will hurt low-income residents to a large extent.

Earlier this month, the mayor accused Uber of trying to resist any form of regulation by provoking racial tensions.

Uber rejected her request and said it offered alternatives that would free low-income communities in Chicago’s South and West from rising taxi costs and raise more money for The city’s budget.

Analysis of data disclosed to Chicago by taxi companies found that the cost of carpooling in Chicago has risen sharply over the past year, while the cost of a ride has remained stable.

Analysis shows that the rise in carpooling prices mainly affects low-income communities in Chicago, where most carpool rides are booked. Carpooling passengers have been reduced during the increase in carpooling costs. (Wind)

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