CABBY'S attempts to get more passengers by advertising his discounted rates has been shot down by authorities.

Trans-Cab driver A.L. Tan had placed a handwritten cardboard sign at his windscreen offering to waive the new peak hour surcharge, which is 35 per cent of the metered fare, compared to old rate of a $2 flat fee.

According to cabbies, since the fare increase last month, many passengers are avoiding taking cabs during the peak hours of 7am to 9.30am, and 5pm to 8pm.

Mr Tan's cab company has warned him that his marketing tactics run against Trans-Cab's company policy.

The Land Transport Authority (LTA) on Monday backed the taxi company.

'If these drivers advertise, there will be an increased tendency for them to solicit for customers based on lower fares advertised if no commuters board their taxis,' said the LTA spokesman.

Read the full story in Tuesday's edition of The Straits Times.