New York hails congestion charge for yellow taxis

The move aims to reduce the number of cars on the streets in busy parts of Manhattan

New York taxi

New York has introduced a congestion charge for taxis to reduce the number of polluting cars on the streets.

The new rule, which has gone into effect in busy parts of Manhattan, means passengers will have to pay an extra $2.50 (£1.92) if their journey takes them south of 96th Street.

Introduced by New York State Governor Andrew M. Cuomo, the charge is expected to raise $1 billion (£770bn) a year – this money will be spent improving the city’s subway system and building better road infrastructure to help ease traffic.

Under the scheme, Uber and Lyft taxis will have to pay a higher fee of $2.75 (£2.11).

Despite this, yellow taxi unions claim the charge will damage their industry and took the matter to court.

While this had the effect of delaying proceedings, the rule has nonetheless gone into effect.

Governor Spokesperson Patrick Muncie said the new fees were a “positive step in our efforts to find a dedicated revenue stream for our subways and buses, as well as easing congestion in Manhattan’s central business district”.

Latest Podcast