The South African National Taxi Council (Santaco) recently weighed in on the much-anticipated Budget Speech, urging Finance Minister Enoch Godongwana to include the taxi industry in the budget.
All eyes are on Godongwana as he prepares to deliver his revised budget on Wednesday afternoon, following a delay last month due to conflicts within the Government of National Unity (GNU) over the proposed two-percentage-points VAT hike.
Santaco’s secretary general Daki Qumbu called for a subsidy for the taxi industry, arguing that the taxi operators deserve more support.
He pointed out the taxi industry receives only one percent of public funding through the government’s taxi recapitalisation programme, which seeks to improve safety in the industry.
However, Qumbu argued that while the taxi industry is profitable, it’s not enough to sustain the industry, particularly after the height of the Coronavirus pandemic.
“We believe the taxi industry deserves much more in terms of subsidy,” he said in an interview with the local broadcaster, Newzroom Afrika.
”The taxi industry is the backbone of public transport in this country, but it is totally unfairly treated compared to other modes of transport.
“The industry is making money, but what kind of money is that? Qumbu asked.
“Is it enough for a living for the people that depend on the taxi industry? Because we cater for the poorest of the poor, people are struggling.”
Qumbu stressed that recovery in the industry has been difficult since the pandemic, adding, “There’s no money. If we provide you with statistics of repossessions, you will see that people are no longer able to buy vehicles or to keep up their installments. Many families are suffering.”
He emphasised that the taxi industry deserves a subsidy, just like other modes of transport.
Qumbu expressed that he hopes Godongwana will address the industry’s challenges in his budget speech.
In 2020, the then Transport Minister Fikile Mbalula, proposed a subsidy for the taxi industry by April 2021, but Qumbu said that promise remains unfulfilled.
“He (referring to Mbalula) said in April 2021 it will be subsidised, but we are shocked. When we look at the statistics and percentages, the taxi industry is just enjoying one percent of the public transport funding in this country by our government.”
When asked why a subsidy is needed, despite the taxi industry being profitable, Qumbu responded, saying: “It’s very easy to say we are making money, the taxi industry, but we should recall that we are competing in a public space in terms of people that will assist us to generate income for our families.”
He also pointed out that the taxi industry is a significant employer.
“We are employing quite a number of people in this country, and we are making differences. So those people must also earn a living,” Qumbu added.
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