PRETORIA – The Department of Transport has clarified that the recently announced R408 million gratuity for taxi operators is not a new handout but a continuation of the Taxi Relief Fund that was rolled out in response to the COVID-19 pandemic.
Initially approved by the Cabinet in 2021, the Taxi Relief Fund had a total allocation of R1.135 billion.
It was introduced to cushion the financial blow dealt to minibus taxi operators and e-hailing service providers during the pandemic.
Importantly, the support was structured as an ex gratia payment – not compensation for income lost, but a goodwill gesture to support the sector during tough times.
According to the Department, 141,987 valid operating licenses are listed on the system used to manage the relief fund.
By 31 March 2023, 88,580 applications had been successfully processed, representing about 62% of qualifying operators.
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Due to many operators struggling to meet the initial deadline, the Department requested an extension, which the Cabinet approved to allow more operators to benefit.
The R408 million announced during the national budget speech will now go towards finalising disbursements to remaining qualifying taxi operators.
To qualify for the relief, taxi operators must:
(a) Be South African citizens or permanent residents;
(b) Hold a valid operating licence or proof of renewal application;
(c) Be registered with SARS for income tax.
The Department has developed a secure, internal system to manage applications, ensuring that only verified operators who have submitted the correct FICA documents are approved for payouts.
This latest funding aims to wrap up the COVID-era support programme and ensure all eligible operators receive their due relief.
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