Transport minister Fikile Mbalula reveals that government has agreed to provide adequate relief package for the taxi industry after a difficult process which involved extensive lobbying and convincing relevant authorities.
“Reaching agreement within government for this relief suport for the taxi industry was a very difficult process that involved extensive lobbying and convincing relevant authorities,” he said.
Government has offered the taxi industry a relief package of R1.135 billion.
Mbalula says the Department of Transport will finalise it’s work and will in due course announce the date on which payments in respect of the available relief will start.
The government has set conditions on which the taxi industry relief fund will be received which include that taxi operations must be formally registered as business entity and that these businesses must be registered for income taxi and other applicable taxes related to running a business in South Africa.
Mbalula adds that the Taxi Industry Relief Fund is however not a compensation for loss of revenue due to coronavirus restrictions imposed on the taxi industry but government, but rather assistance.
“It should be emphasized that this is not compensation for loss of revenue as a result of COVID-19 restrictions, but rather assistance by the government within the available resources and means,” he said.