THE Department of Transport plans to introduce a new ‘taxi subsidy’ as part of a broader focus on making transport more accessible in South Africa, says Transport minister Fikile Mbalula.
Answering in a written parliamentary Q&A, Mbalula said that before this subsidy is introduced, the wider taxi industry will need to take steps towards formalisation.
“The department is finalising the development of a public transport subsidy policy that seeks to locate subsidisation of the taxi industry within the wider, multimodal subsidy policy as part of the public transport funding reforms,” he said.
“A number of different subsidy models are being explored for the taxi industry. The draft policy discussion document is now being consulted with key stakeholders.”
“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
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