Government needs to provide support to taxi industry: SA Taxi Finance

The South African Taxi Finance says the government needs to provide the taxi industry with the support it needs as the industry grapples with lost revenue as a result of the national lockdown regulations implemented by government. Its comments follow an earlier announcement that 76 taxi organisations in Johannesburg are preparing to hike taxi fares by over 172% in mid-June.

Taxi operators have cited higher fuel prices and reduced commuter capacity, in line with social distancing rules, as reasons for the price hike.

Taxi operators have further stated that they are drowning under vehicle debt payments exacerbated by losses in revenue during the lockdown.

Communication Executive at SA Taxi Finance, Marumo Maduma says government needs to move fast to support the industry.

“At the moment, as I’ve said, we’ve given what we can from our business. However, we’re also a non-backed entity. We don’t have any relief from government. So, what we have given is thanks to the over 40 funders locally and internationally that we’ve had to speak to and who have come to the party and helped us to ensure that the industry continues. So, the relief in whatever form they can agree on needs to be financial and it needs to be quick. There’s been too many conversation for too long and that is why we are seeing a lot of the taxi operators and some of the associations are now starting to increase fares, which is going to have a very negative impact on commuters who need to actually use this mode of transport,” says Maduma.

Minister of Transport Fikile Mbalula earlier said that the associations should be mindful of the poor when they raise their hikes. He acknowledged the difficulties that the taxi industry is going through as a result of the lockdown regulations. According to the regulations taxis are only allowed to operate at 70% capacity .

“The minister wishes to remind the industry that the current regulations prevent illegal profiteering. As a result, Minister Mbalula is enjoined by the regulations to refer the matter to the Competition Commission to assess if the fair increases are fair and justifiable.”

Below are regulations guiding the transport sector:

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Source: SABC News (sabcnews.com)