Govt’s R1.1 billion gift to taxis was going to force them to formalise. Now, not so much.

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Applications are now open for taxi operators and e-hailing drivers to claim their R5,000 ex-gratia Covid-19 payments.

The amount of money available has remained the same, but taxi operators scored what seemed like a significant victory when Mbalula rolled back formalisation plans linked to the payments.

Taxi businesses would have to make payments to the Unemployment Insurance Fund and make their Skills Development Levy payments, and comply with labour laws. Taxi operators “will be required to transfer their operating licences to business entities within seven years”, the rules held, and minibus taxis still being financed had to be transferred from private owners to companies within five years.wiped out all those requirements, no longer making any reference to formalisation.

In July 2020, Parliament allocated R1,135 billion Taxi Relief Fund as a once-off payment to taxi operators to provide relief for the COVID-19 impact on the sector.

 

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