The South African government plans to move forward on its plan to formalise South Africa’s R50 billion taxi industry – including the introduction of subsidies,…
The South African government plans to move forward on its plan to formalise South Africa’s R50 billion taxi industry – including the introduction of subsidies, says transport minister Fikile Mbalula.
“The key commitment we have made in this regard is to enable partial self-regulation where Santaco plays a key role as a custodian of the standard constitution and code of conduct with a mandate to regulate conduct of members and associations.” “The process is at an advanced stage and Santaco must engage with the draft policy document before this is finalised for implementation. We anticipate placing before cabinet the draft policy in June 2022 for consultation.”Answering a written parliamentary Q&A in September, Mbalula said that before any subsidy is introduced, the wider taxi industry will need to take steps towards formalisation.
“Globally, direct public transport subsidy applies exclusively to formalised public transport services. Therefore, subsidisation of the taxi industry is dependent on the formalisation of the sector, and this is proving to be a major challenge,” he said.
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