Taxi subsidy will come from a reprioritised budget, says minister Mbalula
Economist warns of risk of inflationary effect and further credit ratings downgrades
The national transport department, which is battling the vandalism and looting of SA’s rail infrastructure, says it will reprioritise its already reduced budget allocation to implement an ambitious subsidy scheme for the R5bn taxi industry by April 2021.
The government has dangled the subsidy in a bid to formalise and regulate the taxi industry. Last week President Cyril Ramaphosa said formalising the industry, which transports 16.5-million passengers a day, was a vital step towards ensuring its contribution to the national tax revenue base...