KZN taxi operators urged to apply for once-off relief

KWAZULU-NATAL taxi operators have been urged to apply for the Taxi Relief Fund (TRF) which is aimed to help the sector to overcome the Covid-19 challenges.

The National Empowerment Fund (NEF) said it would be embarking on another roadshow countrywide to encourage taxi operators to come forward and apply for their once-off relief funding at different venues.

The government-backed programme is due to end in March next year.

“As a vote of confidence in the fund-management and disbursement track record of the NEF, the Department of Transport (DOT) set aside R1.135 billion to provide once-off financial relief payments to qualifying South African taxi operators to help the sector in response to the devastating effects of Covid-19 lockdowns and to implement additional safety measures,” said the entity’s general counsel Mziwabantu Dayimani.

Advocate James Mlawu, director-general at the Department of Transport said the NEF was selected by the department as the implementing agent to manage and administer the TRF.

Mlawu said this was because of the organisation’s mandate and unique track record as a development finance institution that plays a crucial role in supporting black entrepreneurs.

He said as a result of Covid-19 lockdowns and more employees being encouraged to work from home, the transport sector globally experienced a loss of passengers and revenue.

Under the first lockdown introduced in South Africa, taxis were allowed to carry 50% of their licensed vehicle capacity and this was later increased to 70% when the lockdown restrictions were eased.

The industry also had to contend with the increased cost of procuring cleaning materials for vehicles and sanitisers for passengers.

“The effect of these measures on the industry was a diminished revenue base and an increase in costs, which undermined the financial viability of many operators. South Africa is estimated to have approximately 142 000 valid taxi operating licences as at the start of the nation lockdown,” said Mlawu.

According to the NEF, the entity has received 33 829 applications representing 80 945 operating licences valued at more than R404 million – and these are at various stages of assessment.

It said a total of R363m or 90% of the value of applications received to date, has been paid by the NEF.

To qualify for the once-off relief payment, the entity said the operator must be a South African citizen or permanent resident, must be registered for income tax, and must be in possession of a valid operating licence or permit, or a receipt proving they have applied to renew their operating licence.

“We urge taxi operators to take this opportunity to apply for taxi relief funding.

“Applications are open until the end of March 2023 and operators with a valid licence and income tax number can apply.

“The NEF’S TRF team will be assisting operators with the application process for them to receive the funding,” said Dayimani.