The transport ministry plans to trial lower base fares for short taxi rides in Tokyo and Osaka in a bid to get more elderly people and foreign tourists using taxis.
A ministry official said Thursday that the initiative will be rolled out in the year from April.
At present, customers pay ¥730 for the first 2 km in central Tokyo and ¥90 for every 280 meters thereafter. Proposals being considered include shrinking the base fare to either ¥370 for the first 0.88 km or ¥460 for the first 1.16 km. The additional ¥90 per 280 meters would apply thereafter.