TAIPEI (Taiwan News) — Taiwan Railway Corporation is set to propose a 26.8% average fare increase to its board on Wednesday afternoon.

The last fare increase by Taiwan Railway was in 1995, marking a 30-year gap without adjustments. This hike is expected to generate an additional NT$4 billion (US$128 million) in annual revenue, per CNA.

Taiwan Railway proposed multiple fare adjustment plans for routes. It plans to implement a distance-based strategy with larger increases for short-distance travel and smaller rises for long distances.

The Tze-Chiang Express fare from Taipei to Kaohsiung is set to increase from NT$824 to NT$975, and the Taipei to Hualien fare will rise from NT$440 to NT$583.

Local train fares from Taipei to Banqiao are set to increase to NT$22, and the Taipei to Hualien fare is expected to rise from NT$283 to NT$375.

TRC Chair Du Wei (杜微) said fare hikes will be decided by the board of directors. He added the adjustments will maintain affordable short-distance fares while retaining long-distance riders.

Taiwan Railways said the Legislative Yuan approved a 3% to 5% reasonable return on investment for fare rates. However, applying the rate could result in a rise that could significantly impact the public. 

TRC added the proposed fare increase will be submitted to the Ministry of Transportation and Communications for review. The final approval will require confirmation from the Cabinet.

TRC reported NT$17.4 billion in transport revenue and NT$4.65 billion in non-transport revenue last year. However, the company incurred a NT$13.8 billion loss, primarily due to the Hualien earthquake and the long-standing fare freeze.