The fronts of the two vehicles were severely damaged in the smash on Kam Tin Road at around 6am.
Authorities said the 57-year-old taxi driver was trapped and had to be freed by firefighters.
He was unconscious when rushed to a hospital, where he was later pronounced dead.
The driver of the seven-seater, who allegedly failed to pass a breathalyser test, was also taken to hospital for treatment.
The 21-year-old has been arrested on suspicion of drink driving.
Last updated: 2021-11-18 HKT 16:15