The government has fixed new fares for taxi cabs in the capital, which are much higher than those in New Delhi, Bangkok, Dubai, Islamabad, Kuala Lumpur and some other South Asian cities.  
An inter-ministerial meeting at the communications ministry on March 23 made the decision upon requests from the cab service operators -- Bangladesh Army Welfare Trust and private firm Toma Paribahan.
State Minister for Jute and Textiles Mirza Azam is one of the owners of Toma Paribahan, sources said.
The meeting fixed Tk 100 for the first two kilometres, Tk 34 for every next kilometre and Tk 8.5 for a minute's wait in the traffic for air conditioned cabs. For non-AC cabs, the rate is Tk 50, Tk 20 and Tk 5 respectively.
This means, if one takes a trip on an AC cab from Dhanmondi-8 to Shahjalal International Airport (16km) and is caught up in the jam for 20 minutes, he will have to cough up Tk 746. It will be Tk 430 in case of a non-AC cab.
In New Delhi, the fare for the first two kilometres is Tk 45 and Tk 19 for every next kilometre and Tk 2.6 for a minute's wait, according to our correspondent there. (See chart for the rates in other cities.)  
The communications ministry said the new fare was fixed considering the comfort, security and safety of passengers.
"This is totally absurd," Sumon Islam, a regular commuter, told The Daily Star. He alleged the government was protecting the interests of the operators.
Mozammel Hoque Chowdhury, secretary general of Passengers Welfare Association of Bangladesh, termed the fare "irrational".
"Passengers will not accept it," he said, adding that he had been at the inter-ministerial meeting where he opposed the move, but to no avail.
At the moment, there is no taxi service in Dhaka. A few still ply the road, but they are illegal.
The new cab service will be launched on April 14, the Bangla New Year. Initially, each of the two operators will import 30 Japanese AC cars for the capital.
In July last year, Bangladesh Road Transport Authority (BRTA) signed an agreement with the army trust and Toma Paribahan. They were supposed to operate 650 cabs in Dhaka and Chittagong in the following four months, but they failed.
BRTA Chairman Nazrul Islam said the fare had been fixed considering the cost of the vehicles, their maintenance, fuel and operation costs.
Rise in fuel prices is another reason for the hike, he added.
Asked about the fares in Dubai, Kuala Lumpur and Bangkok, he said, “Their reality and our reality are not the same. We have huge traffic jams. Do they have such jams in Dubai?” the BRTA chairman said.
According to him, people will benefit from the service.
Asked if the government was more keen on serving the interest of the owners, the BRTA chairman said everything was done following due procedures.
On the selection of Toma which is basically a construction firm, he said the firm was awarded the job as it fulfilled all the conditions set by the BRTA in operating taxi cabs.  
Asked whether the new taxis would go to people's desired places, he said the operators were bound to do so or they would face legal action.  
Communications Minister Obaidul Quader said the army trust and Toma had sought Tk 120 and Tk 130 respectively as the minimum fare.
The fare has been fixed at Tk 100 as the cabs will be of 1,500cc octane-run cars with tracking and monitoring systems and online meters in them, he said.
About the fares in other countries, Obaidul said the situation in India and Nepal did not match with Bangladesh, as Indian cabs (800cc) were cheaper and diesel-run.
He said the government had engaged the army in the venture to maintain transparency and security.
"People will have confidence in the army," said the minister, adding that the army-run cabs would be olive and red.
Asked if people could afford the fare, he said, "If anyone does not like it, he can choose other means of transport."
"Let the cabs start operating first, and then we will see how people take the service. We will look into the matter after evaluating the reality," he said when asked if the authorities would reduce the fare.
On Mirza Azam's involvement in Toma, Quader said, Azam knew nothing about his company being awarded the job.
Asked if he knew the owner of Toma, the communications minister said, "It is important whether the owner accepts my terms and conditions. It does not matter if I know the owner of Toma."  
Azam, owning a private company while being a state minister, is a clear violation of the constitution.
“No person appointed to or acting in any office to which this article applies shall hold any office, post or position of profit or emolument or take any part whatsoever in the management or conduct of any company, association or body having profit or gain as its object,” reads Article 147 (3) of the constitution.
CNG FARES TO RISE  
The government is also considering hiking fares of CNG-run three wheelers from next month, BRTA sources said.
The fare might be increased by 30 to 60 percent.
The BRTA chairman said a committee had proposed the hike, but the government was yet to decide on it.
He said the CNG owners association had been pressing the BRTA in this regard for long.