COST OF LIVING/Taipei Metro to maintain fares, reduce cashback for frequent passengers

Taipei, Nov. 30 (CNA) Taipei Rapid Transit Corp. (TRTC), which operates Taipei Metro, has announced that ticket fares are to remain the same, but it plans to reduce the cashback rate for frequent passengers from next year.

Meanwhile, the NT$1,200 (US$36.97) monthly TPasses will not be affected, the company said in a statement on Friday.

In the statement, the TRTC said that with the rise of electricity rates, salaries and basic wages, the company could see a deficit in 2025, which could negatively impact the service quality and safety of transit services in the long run.

As a result, a board meeting decided to reduce frequent passenger cashback rates from 10-30 percent to 5-15 percent, a measure set to be introduced in the first half of 2025, after a report is submitted to the Taipei City government.

Initial estimates show that about 300,000 passengers will be affected by the policy change, the TRTC said.

The TRTC said while its main business of transportation has faced losses for many years, it has proactively developed side businesses to fund the transportation business.

However, the company faces costs of about NT$130 billion related to operating the metro system over the next 30 years, for which it has to put aside about NT$4-5 billion annually, the TRTC added.

The company also deferred an NT$5 billion rental payment during the COVID-19 pandemic, increasing the financial burden on the company's transportation business, it noted.

Moreover, since the metro began operations in 1996, ticket fares have not changed, while the consumer price index has risen 34 percent and the salaries of those employed in the transportation and storage sector have increased by 51.2 percent, the company said.