Build One South Africa (Bosa) leader Mmusi Maimane has called on Minister of Transport Barbara Creecy to provide full transparency regarding the government’s allocation of R408-million as “once-off taxi gratuity” in the 2025/2026 national budget.
The R408 million estimated expediture allocation is subject to change based on provincial budget decisions and laws, according to the national budget estimates.
The amount is included in the 2025/2026 budget estimates of national expenditure’s community development section.
It shows how money from the national revenue fund is given to the function group. This is different from how the overall function group budget is shown in the budget review.
Maimane has formally questioned Creecy in parliament, demanding that she provides a full breakdown of how the funds will be distributed, who will benefit from them, and why the government believes this payment is justified.
He has also called for transparency to ensure that the allocation is not simply another case of government funds being used to benefit politically connected groups without proper oversight.
Payment raises red flags
Roger Solomons, the spokesperson for Bosa, raised concerns about the necessity, justification, and intended beneficiaries of this expenditure.
While the budget is yet to be debated and voted, he argued that the substantial payment to the taxi industry, which he emphasised does not contribute to the country’s tax base, raises red flags about accountability and spending priorities
“For a multibillion-rand industry that pays zero tax, this allocation is highly questionable,” Solomons said.
“While ordinary South Africans struggle under the weight of VAT increases, high fuel prices, and rising costs of living, the government is handing over hundreds of millions of rands to an industry that does not contribute its fair share to the country’s tax base.”
He said coalition parties are already divided over spending decisions and insisted that Creecy must provide clarity to prevent the allocation from becoming another questionable government expenditure.
