Creecy says taxpayers still paying Covid-19 relief funds to taxi industry

Transport minister Barbara Creecy has revealed that the department is still disbursing Covid-19 relief funds to the taxi industry.

This emerged in a written parliamentary response to a question from Build One SA (Bosa) leader Mmusi Maimane.

Creecy said R408m in a “one-off taxi gratuity” was allocated in the 2025/26 financial year budget to allow for the conclusion of the disbursement of the 2021 relief fund, which was intended to mitigate the effect of Covid-19 on the taxi industry.

“Due to a number of challenges in the taxi industry, not all operators managed to access the relief fund,” Creecy said. 

“As of March 2023, about 56,623 qualifying operating licences on the system were still not paid. Cabinet approved an extension on August 31 2023 to allow that R708m, which was the balance on March 31 2023, be paid out to outstanding taxi operators.

“In this regard R300m was allocated in the 2024/25 financial year and the balance of R408m has been allocated in the 2025/26 financial year to allow for the conclusion of the disbursement.”

In 2021 the cabinet approved a R1.135bn one-off payment to help taxi operators during strict Covid-19 restrictions, when the industry could not access other forms of relief. Creecy said the relief was granted to all legal taxi operators with valid operating licences during the national lockdown.

Maimane criticised the continued payouts to the industry.

“Bosa finds it unacceptable that public funds continue to flow to a sector without clear transparency, accountability or evidence of need, especially as essential public services such as education and healthcare remain underfunded,” he said.

He argued that while South Africans would be forced to adjust to the half-percentage point VAT increase set to take effect on May 1, the government continued to disburse funds to a multibillion-rand industry that does not pay tax.

“Parliament is now preparing to finalise the national budget in the coming weeks, and factional battles within the GNU [government of national unity] are already delaying progress. This latest revelation only reinforces Bosa’s position that the current budget has both misguided priorities and questionable allocations.

“At a time when our economy demands bold action and strategic investment, continued handouts under the guise of Covid-19 relief is an insult to struggling taxpayers and unemployed citizens.”

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