Transport Minister Fikile Mbalula Picture: Kopano Tlape/GCIS
Transport Minister Fikile Mbalula Picture: Kopano Tlape/GCIS

Taxi owners to receive R5 000 once-off payment per taxi, says Mbalula

By Zintle Mahlati Time of article published Jun 19, 2020

Share this article:

Johannesburg - Transport Minister Fikile Mbalula says the taxi industry will receive relief funding of R1.135 billion to help cushion the economic impact of the coronavirus pandemic.

Mbalula announced the relief on Friday following a meeting with the taxi industry. 

He said each taxi would be allocated R5 000 and this will go to taxi owners. The minister said it would be a once-off payment.

"The R5 000 per taxi is once-off. It cannot be calculated for the entire duration of the lockdown. R1.135 billion has been set aside for the taxi industry. Even in that, there has been an argument about whether it is enough. Others said they want R20 000 per taxi, it is not possible to do that. If you say R20 000 per taxi that comes up to R10 billion, the government will not have R10 billion in its kitty to provide to the taxi industry," Mbalula said.

He said it was not possible to award the industry more than the allocated amount as the government had no funds. Various industries had been impacted by the closure of businesses, Mbalula said.

"Our response to the virus has been informed by goodwill and sacrifices. Industries have fallen apart. Such industries should be saved if we can save them," he said. 

Taxi owners will have to be genuine registered operators to benefit from the funding. 

The taxi industry had reportedly demanded more than the R1 billion being offered by the government. Like other industries, taxis have been required to reduce their load capacities in an attempt to slow down the spread of the coronavirus. Because of this, the industry has suffered from reduced income. Last week, various taxi associations said they would be increasing their prices to make up for the lost income. In most areas taxis fees will increase by R7.

Mbalula said his meeting with the taxi industry had also focused on possibly going back to the 100% capacity. He said the decision cannot be taken by his department alone and that it would be discussed by the government's National Coronavirus Command Council.

IOL

Share this article:

Related Articles