The Department of Transport’s R1.135 billion Covid-19 taxi relief fund will be distributed by the National Empowerment Fund (NEF) and qualifying operators will receive a once-off ex gratia payment of R5 000.
“The relief fund of an amount of R5 000 per qualifying operator is not intended to compensate for loss of income,” Transport Minister Fikile Mbalula stated in directions issued in terms of the regulations of the Disaster Management Act, dated 2 December.
According to the minister, the taxi industry bore the brunt of the restrictions implemented to curb the spread of Covid-19 after it was initially forced to limit vehicle capacity to 50% and later 70%.
He said the net effect of the stringent measures was a declining revenue base and increasing costs that have left many taxi operators struggling to stay afloat financially.
To qualify, taxi operators (of a motorcar, minibus or midi-bus) will have to be South African citizens or permanent residents, be in possession of a valid operating licence or a receipt as proof of renewal of an operational licence at the start of the national lockdown.
Operators will also need to be registered with SARS for income tax at the start of the national state of disaster in March last year.
The deadline for the submission of applications for the taxi relief fund is 28 February 2022, and payments must be completed by the end of March next year.
Trade union federation Cosatu welcomed the requirement for applicants to provide copies of their SARS’ registration as taxpayers, saying the move is critical as taxpayers cannot subsidise those who refuse to pay taxes.