WATCH | Taxi industry wants to be included in 2025 budget

The SA National Taxi Council (Santaco) is calling for finance minister Enoch Godongwana to include the multibillion-rand taxi industry in the 2025 budget.

With the budget speech set to take place on Wednesday, Santaco secretary-general Daki Qumbu believes the industry deserves a subsidy.

The industry receives 1% of public funding through government's Taxi Recapitalisation programme, which aims to improve safety in the industry.

In an interview with Newzroom Afrika, Qumbu argued that while the industry is profitable, it's not enough to sustain it, especially after the Covid-19 pandemic.

“The industry is making money, but what kind of money is that? Is it enough for a living for people who depend on the taxi industry? We cater to the poorest of the poor.  We’re speaking of a bare minimum, and people are struggling. Since Covid-19, it has been very difficult for the taxi industry to recover,” he said.

“There's no money. People are no longer able to buy vehicles or keep up with instalments. Many families are suffering, and we believe it is the right of the taxi industry to receive the subsidy, like other modes of transport. We are hopeful the minister will  include the taxi industry in the public subsidy regime in his budget speech.”

The taxi industry is estimated to be worth more than R90bn per annum and employs around 300,000 people directly and indirectly.

Former transport minister Fikile Mbalula had planned to introduce a subsidy for the taxi industry by April 2021, acknowledging it deserves government support, like other modes of transport.

In 2022, government donated R1.1bn to the industry as part of the Covid-19 relief fund. However, Qumbu expressed concern the promise of a subsidy has not been fulfilled.

“Since the formation of Santaco in the 2001, there has been an undertaking and engagement with the department to ensure the backbone of public transport, the taxi industry, is subsidised. So many promises have been made. Fast forward to the 2020, when we had our national taxi lekgotla with the department and civic society members. There was a resolution that it was time the taxi industry is  subsidised.”

He said the taxi industry is unfairly treated compared to other modes of transport.

“The taxi industry is the backbone of public transport in this country, but it is treated unfairly compared to other modes. The public must remember we are competing with other modes of transport, but the treatment is not the same.”