Cab trips are about to cost a little bit less under new Victorian government reforms to the taxi industry.

Starting on Saturday, surcharges for paying a cab fare with a credit or debit card will be halved from 10 per cent excluding GST to five per cent inclusive.

In an effort to promote competitiveness between taxi operators, a $100 fare with an added $11 surcharge will now cost $105 under the new scheme.

Transport Minister Terry Mulder said the reforms put the customer first, and would cut the $30 million annual figure that taxi passengers pay in card fees.

‘‘One of the key recommendations from the taxi inquiry was to rapidly decrease the cost of using credit or debit cards,’’ Mr Mulder said on Friday.