Debunking fallacies surrounding the South African taxi industry

Taxis being been impounded at Airport Approach Road this week, amid attacks on motorists and a blockade that has dented the economy of the city. Picture: Armand Hough / African News Agency (ANA)

Taxis being been impounded at Airport Approach Road this week, amid attacks on motorists and a blockade that has dented the economy of the city. Picture: Armand Hough / African News Agency (ANA)

Published Aug 8, 2023

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The ongoing taxi strike in Cape Town that has erupted in violence has once again shone a light on the country’s taxi industry.

While some may think the industry is a law unto themselves, others who have been involved in it for almost all their lives, think differently about it.

Mbali Ntuli, head of the Ground Work Collective NPC and former DA Youth leader, weighed in on the taxi industry as Cape Town authorities explored various methods to quell the situation.

Ntuli’s late father, who died when she was eight, was an influential figure in the formation of the KwaZulu-Natal Taxi Association, one of the biggest in the country.

Her family is also invested in the taxi industry.

“The taxi Industry doesn’t pay tax”

Ntuli said the industry pays tax in various forms. “VAT, levies, pays for permits (operating licenses). All of this requires Sars and so, about 89% of taxis in this country are operating legally.

“The false idea of those in the industry not paying tax may be so because it revolves mainly around cash,” Ntuli explained.

“You have to prove where you get your money to buy a house, cars, apply for NSFAS etc. It is insane to think that people in the taxi industry can pay for all these things using coins collected from fares,” Ntuli said in a post on social media on Tuesday.

“The taxi industry is a private business”

Like big companies worth billions of Rands, the taxi business is a private business that serves the public. Just like McDonald’s for instance. The government must enforce what and how McDonald’s sells in terms of the laws of our country.

This is the same with the taxi industry.

“It services the public but it is privately owned and this is where the majority of issues arise, both from how the government treats it and the public,” Ntuli said, adding that “owners” and “associations” are different.

The industry is governed by multiple levels of government, which causes backlogs and inefficiencies at times, Ntuli explained.

“Taxis in most parts are governed by the National Land Transport Act, however, some areas such as licenses and association dealings are done at provincial and municipal level. It is a mess.”

The ongoing strike in Cape Town was sparked after the City of Cape Town introduced its new by-laws, which according to Santanco were too strict, as it gave the City power to impound taxis.

Santaco said the minibus taxis were being unfairly targeted and having their vehicles impounded over minor infractions or offences.

Ntuli believes the issue of impounding taxis is debatable, as it is sometimes done for reasons which the taxi industry has asked for help on. She said, however, that the impounding process is sometimes done with impunity and doesn’t allow for the owner to defend himself.

“For example for obstruction. We’ve all seen taxis stop where they shouldn’t, most times they are in the wrong. They’ve asked for more designated stop points because the nature of dropping off passengers isn’t the same as bus routes.

“The stops have been well known for years but this hasn’t happened and so when a taxi stops there and then is fined or impounded, it causes tensions,” Ntuli said.

Click here to read Mbali Ntuli’s thread on the taxi industry.

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