Taxi fares in Ottawa will be more expensive than those in Toronto, Montreal and Vancouver when fares go up eight per cent next month.
The fare hike was approved by a city committee on Thursday and is directly related to the HST, which comes into effect on July 1.
"There goes the tip, that's about all I can say," said one Ottawa resident.
"No one likes paying more for anything," added another.
Until now, taxi drivers in Ontario haven't charged the provincial sales tax. However, the HST will change that, giving Ottawa one of the highest taxi rates in the country. For example, a 10-kilometre trip will soon cost $21.73.
While the committee approved the eight per cent hike, they did not agree to the additional 3.5 per cent increase that taxi drivers were pushing for.
Drivers wanted the additional increase to help combat the financial impact of the recession, the growing illegal taxi industry, as well as the closure of the Congress Centre for construction. Drivers argued they've been hit with fewer customers as a result.
With a report from CTV Ottawa's Kate Eggins
