R408 million allocated for taxi industry relief raises eyebrows

IOL News

24-04-2025

The Department of Transport has allocated R408 million to disburse Covid-19 relief funds to the taxi industry.
Image: Picture: David Ritchie Independent Newspapers
The Transport Department has announced the allocation of R408 million in its 2025-26 budget for disbursement as Covid-19 relief funds to the taxi industry.
This was disclosed by Transport Minister, Barbara Creecy, when she was responding to Build One South Africa (Bosa) leader Mmusi Maimane, who asked about the once-off gratuity allocated in the budget tabled in Parliament.
Maimane asked the purpose of the allocation, its rationale, intended beneficiaries and criteria to determine its distribution.
In her written response, Creecy said Cabinet approved a once-off relief fund to the tune of R1.135 billion in 2021 to mitigate the negative impact of Covid-19 on the taxi industry.
She said due to a number of challenges in the taxi industry, not all operators accessed the relief funds.
'As at March 2023, approximately 56 623 operating licences on the system were still not paid,' she said.
Creecy also said Cabinet approved the extension on 3 August 20223 to allow the balance of R708m to be paid to outstanding taxi operators.
'In this regard an amount of R300m was allocated in the 2023-24 financial year and the balance of R408m has been allocated in the 2025-26 financial year to allow for the conclusion of the disbursement.'
She explained that the relief funds were granted to all legal operators in the taxi industry with valid operating licences and that were in operation at the start of the national lockdown.
'The taxi relief fund was approved as an ex-gratia payment to assist taxi operators to mitigate the hardship caused by the Covid-19 restrictions since the taxi industry was unable to access other relief response packages that were established for other sectors at the height of the pandemic,' said Creecy.
Maimane said the allocation to the taxi industry raised serious concerns over transparency, accountability, and the government's spending priorities.
'For a multibillion-rand industry that pays zero tax, this allocation is highly questionable,' he said.
Maimane also said the government was handing over monies to an industry that did not contribute its fair share to the country's tax base while ordinary South Africans struggled under the weight of VAT increases, high fuel prices, and rising costs of living.