Johannesburg - The Department of Transport’s R1.135 billion Covid-19 taxi relief fund will be distributed by the National Empowerment Fund (NEF) for R40 million and qualifying operators will receive a once-off ex gratia payment of R5 000.
Transport Minister Fikile Mbalula has indicated that the fund is to assist operators in alleviating the impact of Covid-19 in the taxi industry.
”The relief fund of an amount of R5 000 per qualifying operator is not intended to compensate for loss of income,” Mbalula stated in directions issued in terms of the regulations of the Disaster Management Act dated December 2.
According to the minister, the taxi industry bore the brunt of the restrictions implemented to curb the spread of coronavirus after it was initially forced to limit vehicle capacity to 50% and later 70%.
He said the net effect of the stringent measures was a declining revenue base and increasing costs that have left many taxi operators struggling to stay afloat financially.
”The department solicited the services of the NEF as the vendor and implementing agency to administer the relief scheme to the industry due to their experience and capacity in dealing with such systems but to also authenticate the registration of these operators as business entities,” read the directions.
National Treasury documents show that the department applied for a deviation in March this year to appoint the NEF, which is an agency of the Department of Trade, Industry and Competition, to pay the R1.135bn to taxi operators at a cost of R40m and this was conditionally supported.
To qualify, taxi operators will have to be South African citizens or permanent residents, be in possession of a valid operating license or a receipt as proof of renewal of an operational license at the start of the national lockdown.
Taxi operators are defined as any person holding operating license to ferry passengers for reward by either a motorcar, minibus or midi-bus.
Operators will also need to be registered with the SA Revenue Service (Sars) for income tax at the start of the national state of disaster in March last year.
The deadline for the submission of applications for the taxi relief fund is February 28, 2022, and payments must be completed by the end of March next year.
Trade union federation Cosatu welcomed the requirement for applicants to provide copies of their Sars’ registration as taxpayers.
Cosatu believes the move is critical as taxpayers cannot subsidise those who refuse to pay taxes.
Political Bureau