WA govt taxi plans will cost Cabcharge $4m

Cabcharge says the Western Australian government's plans to cap taxi payment fees will cost it up to $4 million.

The Western Australian Government's plan to cap taxi payment fees at five per cent could cost the sector's dominant player, Cabcharge, about $4 million a year.

Cabcharge currently charges a 10 per cent fee to process payments for taxi fares in Western Australia, but the state government plans to follow Victoria and NSW in capping fees at five per cent.

The company said the move could reduce its taxi service fee income by $4 million.