Taxi bosses threaten to shutdown Gauteng: R1 billion insufficient

Taxi bosses threaten to shutdown Gauteng: R1 billion insufficient

- The South Africa National Taxi Council has snubbed the government's bailout plan

- Minister Fikile Mbalula recently announced a R1 billion relief plan for the sector

- However, this has been dubbed insufficient and now the council has vowed to shutdown Gauteng

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The South Africa National Taxi Council says it will be shutting down Gauteng on Monday. reported that to government had offered the sector a R1 billion package, amounting to around R5 000 a taxi.

However, SANTACO does not seem to be pleased, adamant that the fund is simply not enough to provide relief.

Taxi owners are unimpressed with the conditions attached to accessing the fund with the government putting criteria such as registering with SARS and opening a bank account into place.

Operators had previously asked for at least R20 000 each, snubbing the government's counteroffer of R5 000 on the condition that the sector is formalised.

READ ALSO: Fikile Mbalula announces relief packages for the transport industry

Anticipating this response, Minister Mbalula revealed that taxi bosses had already signalled their displeasure.

Commenting on the situation, Mbalula condemned plans to protest the amount offered by the relief fund:

"Shutdowns will not work. It will be detrimental to the industry itself and its survival. But equally, we would be misunderstanding the whole situation we are in, which is fighting COVID-19. And the taxi industry has come to the party in a big way. And we appreciate that."

eNCA reports that it remains unclear whether or not the shortfall will be passed on to citizens through drastic price increases on tariffs.

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