The provincial government is touting the harmonized sales tax as a good thing for businesses, but some local cab companies beg to differ.

Rick Smith, managing partner of Brant Taxi, said the HST being implemented on July 1 is going to “double ding” taxi companies.

“Not only do we have to charge the eight per cent Provincial Sales Tax on fares,” Smith said. “But we have to pay it on fuel now too.”

The PST was previously exempt from both fares and fuel.

Smith said while Brantford’s Police Services Board – which regulates the taxi industry – will be asked to institute a fare increase to cover the HST on cab rides, that won’t be the case to account for the fuel cost.

“We are going to have to eat that increase,” Smith said. “Find some efficiencies in our operation, I guess.”

Fred Sayle, the owner of City Taxi, said he thinks the fares should go up closer to 15 per cent to help cover the added fuel cost.

“That’s an estimate for now,” Sayle said. “We have been asked to have a proposal to the police board for their March meeting, so we’ll crunch the numbers before then.”

Even with a large fare hike, Sayle said the HST is a “nightmare” for cab companies.

“Our revenues are down 30 per cent from where they were two years ago,” Sayle said. “An increase in fares does not mean an increase in revenues. Whenever you increase rates, you lose some business.”

The Police Services Board is hearing an information report on the issue at their meeting on Thursday morning, but won’t be making any decisions until they hear from the cab companies.

“They are required to come to us for any fare increase,” Coun. Mark Littell – chair of police services – said. “They have yet to provide us with any request.”

Once a decision is made, Smith said implementing the increase shouldn’t have any additional cost.

“The meters would simply be reprogrammed and retagged so they can’t be tampered with,” Smith said.

One additional measure Smith hopes the board implements is some signage to warn about the increase.

“In Toronto they are putting a notice in all the cabs to let people know about the fares,” Smith said. “I’d like them to do that here so people know this is coming on July 1.”

Between them, Smith and Sayle represent the majority of taxis in Brantford – Brant Taxi with 31 of the 91 licences and City Taxi with 36.