Grant conditions anger taxi drivers

RELIEF PACKAGE: ONLY THOSE WHO ARE LEGALLY COMPLIANT WILL SHARE R1.135BN – MINISTER

Operators oppose conditions set down for access to state financial support.

The government is giving the taxi industry a R1.135 billion bailout package – but it won’t be just a handout because only those who are legally compliant – and registered for tax – will be paid out.

However, the industry is not happy with the aid being subject to “formalisation processes” and wants the two to be separated.

In announcing the relief package yesterday, Transport Minister Fikile Mbalula said “reaching agreement within government for this relief support for the taxi industry was a difficult process”.

The money will be disbursed, subject to conditions:

The taxi operations must be formally registered as a business entity;

The registered business must have a business banking account into which the relief allowance will be paid into;

These businesses must be registered for income tax and other applicable taxes related to running a business;

The registration process also includes registration of employee(s) with the Unemployment Insurance Fund, the Compensation Commission and for the skills development levy; and

They must be in possession of a valid operating licence or a receipt as proof of application for an operating licence. Such receipts must have been issued before 28 February this year.

Mbalula said government had made the effort to accommodate the taxi industry because it is the largest carrier of commuters with “86% of commuters transported daily”.

He said that because of the lockdown restrictions, the taxi industry “was operating less than 60% of its fleet size, and carried 30% less of its licensed carrying capacity. Almost 20% or more of the taxi industry experienced total loss of income.”

Mbalula emphasised that the funding to the industry was “not compensation for loss of revenue as a result of Covid-19 restrictions, but rather assistance [from] government within the available resources and means”.

Mbalula said also that gradual resumption of most transport sectors would be allowed. Long-distance rail company Shosholoza remains closed in Level 3. Gautrain services are open and Metrorail services are expected to resume soon.