Minister of Transport Barbara Creecy claimed that the R408-million set aside as a once-off gratuity for the taxi industry is meant to conclude the disbursement of the Covid-19 relief fund for the industry.
Creecy indicated that the once-off gratuity is the leftover amount of the R1.135 billion relief fund that cabinet approved for the industry in 2021.
Thousands of taxi operators still not paid
This fund was meant to ease the negative impact of the Covid-19 pandemic on the taxi industry.
“Due to a number of challenges in the taxi industry, not all operators managed to access the relief fund. As at March 2023, approximately 56 623 qualifying operating licenses on the system were still not paid.
“Cabinet approved an extension on 31 August 2023 to allow that an amount of R708-million, which was the balance at 31 March 2023, be paid out to outstanding taxi operators.
“In this regard, an amount of R300-million was allocated in the 2024/25 financial year. The balance of R408-million has been allocated in the 2025/26 financial year. This is to allow for the conclusion of the disbursement,” said Creecy.
This was in a written reply to Build One South Africa (BOSA) leader, Mmusi Maimane. He was seeking clarity on the R408-million once-off gratuity.
Maimane criticised the Covid-19 relief fund pay-outs to the industry five years since the peak of the pandemic.
Industry accused of paying almost no tax
He said it was unacceptable that the pandemic-era funding is still being disbursed to the “multibillion-rand industry that pays almost no tax”.
Maimane added that South Africans are facing increased financial pressure from a VAT hike and personal income bracket creep.
His party highlighted that many essential public services, education and healthcare are still underfunded. This while Parliament is in the process of finalising the national budget.
“Parliament is currently preparing to finalise the national budget in the coming weeks. And factional battles within the government of national unity (GNU) are already delaying progress,” said Maimane.
“This latest revelation only reinforces BOSA’s position. The current budget has both misguided priorities and questionable allocations.
“At a time when our economy demands bold action and strategic investment, continued handouts under the guise of Covid-19 relief is an insult to struggling taxpayers and unemployed citizens,” he added.
