The minister highlighted that the industry still operated on the fringes of the formal economy and failed to comply with the country’s tax laws and labour laws intended to protect workers.
Transport Minister Fikile Mbalula at the NW taxi lekgotla on Thursday, 22 October 2020. Picture: @MbalulaFikile/Twitter
CAPE TOWN – Transport Minister Fikile Mbalula on Thursday addressed the North West provincial taxi lekgotla in Rustenberg.
He said that taxi groups were on a path towards an industry that was formalised, effectively regulated and empowered with the benefit of a government subsidy.
Last week, Mbalula addressed the Western Cape provincial lekgotla where it was revealed that 87 people had been killed in taxi violence in the province this year.
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Mbalula said that it was evident that despite government intervention to support the taxi industry, it was still characterised by oversupply, decreasing revenue, poor infrastructure and uncontrolled competition on routes.
He said that this has resulted in ongoing conflict and violence across the country.
Mbalula said that many taxi operators were forced into financially unsustainable businesses, operating with badly maintained and extremely old vehicles, that threatened the safety of passengers and other road users.
The minister highlighted that the industry still operated on the fringes of the formal economy and failed to comply with the country’s tax laws and labour laws intended to protect workers.
A national taxi lekgotla will be held from 29 October to achieve consensus on a blueprint for the industry’s future anchored on formalisation and subsidising.