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IOL News
24-04-2025
- Business
- IOL News
R408 million allocated for taxi industry relief raises eyebrows
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.
IOL News
22-04-2025
- Business
- IOL News
Government continues to pay millions in COVID-19 relief funds to taxi industry
Transport Minister Barbara Creecy confirmed in response to a written parliamentary question from BOSA Leader Mmusi Maimane that the government will continue disbursing Covid-19 relief funds to the taxi industry throughout the 2025/26 financial year. Approximately R480 million has been allocated in the current budget to facilitate the final disbursement of Covid-19 relief funds, five years after the peak of the pandemic. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Creecy said the Cabinet approved a once-off relief fund to the value of R1.135 billion in 2021, which was intended to mitigate the negative impact of Covid-19 on the taxi industry. 'Due to a number of challenges in the taxi industry, not all operators managed to access the relief fund. As of March 2023, approximately 56,623 qualifying operating licenses on the system were still not paid. 'Cabinet approved an extension on August 31, 2023, to allow that an amount of R708 million, which was the balance on March 31, 2023, be paid out to outstanding taxi operators. 'In this regard, an amount of R300 million was allocated in the 2024/25 financial year, and the balance of R408 million has been allocated in the 2025/26 financial year to allow for the conclusion of the disbursement,' she explained in her response. In a statement, BOSA condemned the decision, saying it is unacceptable that public funds were used for a sector without clear transparency, accountability, or evidence of need, especially as essential public services like education and healthcare remain underfunded. The party argued that there was no need to pay funds to a multibillion-rand industry that pays almost no tax. To qualify for taxi relief funding as an operator, Creecy said you need to be: • Be a South African citizen or permanent resident in the Republic. • Have a valid operating license, or receipt as proof of application for renewal of an operating license. • Be registered for income tax with the South African Revenue Services (SARS). Meanwhile, Parliament is currently preparing to finalise the national budget in the coming weeks, and factional battles within the Government of National Unity (GNU) are delaying progress. The court proceeding against the 0.5% VAT hike is underway at the Western Cape High Court. The Democratic Alliance (DA) and Economic Freedom Fighters (EFF) members are attending the hearing.
