The South African government recently allocated R408 million to the taxi industry, raising several questions in the process.
The allocation has drawn the attention of the public and political parties alike, who have heavily criticized the decision over a lack of transparency.
R408 million for what, exactly?
The R408-million payout was first announced as part of Finance Minister Enoch Godongwana’s revised 2025/2026 National Budget Speech, which aired on 12 March 2025.
The allocation, which is described as a “once-off gratuity,” is currently facing a great deal of backlash from various stakeholders as parliament prepares for the crucial vote on the national budget plan over the coming weeks.
Most notably, Mmusi Maimane’s political party – Build One South Africa (BOSA) – announced that it has formally approached Transport Minister Barbara Creecy demanding a comprehensive explanation for the national government’s decision to allocate such a large sum to the taxi sector.
Maimane submitted a parliamentary question to the minister seeking to clarify three major points of contention.
First and foremost, the party requested that the government explain its reasoning behind the R408-million gratuity.
It also asked for greater transparency regarding the intended beneficiaries of the payment, and a breakdown of the process and criteria the government used to determine this distribution.
BOSA spokesperson Roger Solomon argued that there are significant concerns and implications involved with committing funds of this scale to an industry with a questionable record of tax contributions.
“For a multibillion-rand industry that pays zero tax, this allocation is highly questionable,” he said.
Solomon went on to highlight that the payout comes at a time when South African citizens are facing ever-rising living costs, from a VAT increase to alarmingly high petrol prices.
BOSA has therefore called upon the government to explain its decision, stating that it is critical that all public spending be thoroughly justified in a country struggling with high unemployment, failing public services, and economic stagnation.
“Taxpayers deserve to know whether this R408 million payment is a necessary intervention or simply another opaque expenditure benefitting a politically connected sector,” said Solomon.
Loading ...
