A new taxi fare system will officially go into effect in Changsha, capital city of Central China's Hunan province, on March 25.

According to the new pricing plan announced by the municipal government at a news conference on March 18, the base fare for the taxi service will go up from 6 yuan ($ 0.97) to 8 yuan for the first two kilometers in the daytime.

The rate per kilometer after the first 2 kilometers will rise by around 10 percent, from 1.8 yuan to 2.0 yuan.

It will be 10 yuan for the first 2 kilometers and 2.4 yuan per km afterwards during the night (from 10 pm - 5:30 am).

Local government stated during the news conference that the increase in operating incomes after this fare adjustment will be mainly used for the taxi drivers. The management authority will supervise local taxi companies to avoid increase in leasing fees charged to taxi drivers.

Currently, taxi companies charge drivers lease fees out of their total earnings on a monthly basis.

The new fare system will come into force starting from March 25. Changsha county will implement the same standard as its taxi sector is now under the unified administration of the municipal passenger transport management department.