Santaco defends Covid-19 relief fund payments to taxi operators

THE SOUTH African National Taxi Council (Santaco) has hit back at criticism following the Department of Transport's plans to allocate R408 million of its 2025-26 budget to the taxi industry. 

Responding to a Parliamentary question by Build One South Africa's Mmusi Maimane, Transport Minister Barbara Creecy said Cabinet had approved a once-off relief fund of R1.35 billion to the industry.

Santaco's national spokesperson, Mmatshikhidi Rebecca Phala, said the organisation welcomes the continued efforts by the Department of Transport to process and pay outstanding relief funds to taxi operators, many of whom were among the hardest hit by the pandemic’s economic impact.

"It is important to note that tax compliance is a core requirement to access these funds. As such, claims that relief is being paid to a non-compliant taxi industry are false and misleading.

"The distribution process has been governed by clear and regulated criteria. The criterion for qualifying operators is solely when they are a South African citizen or permanent resident in the Republic, hold a valid operating license, or receipt as proof of application for renewal of an operating license and must be registered for income tax with the South African Revenue Services," Phala said.

She added that despite carrying the majority of South Africans daily, the taxi sector, unlike other types of public transportation, remains unsubsidised.

Phala went on to say that this framework, the relief fund, is a necessary and acceptable action, much as assistance offered to other sectors severely impacted by the pandemic.

"We urge the public to show compassion and understanding. Delays in some applications are due to longstanding issues such as operating license backlogs, not non-compliance or mismanagement.

"Santaco reiterates optimism that continuing engagements between the industry and government will soon lead to the realisation of a long-overdue subsidisation model that will reflect the vital role played by the taxi industry in the country's public transport system," she added.