Whereas, the transport sector, across the world, experienced massive ridership drop due to the spread of the novel coronavirus (Covid-19). This followed stringent measures imposed by many countries in an attempt to mitigate and curb the spread of the virus. Some of these measures included restrictions in the movement of people through lockdowns as well as encouragement for people to work from home.

Whereas, in South Africa, the taxi industry bore the brunt of these measures. Initially, taxis were allowed to carry only 50% of their licensed vehicle capacity and this was later increased to 70% when the lockdown restrictions were eased. The industry also had to contend with increased cost of procuring cleaning materials for vehicles and sanitisers for passengers. The net effect of all these to the industry has been a declining revenue base and an increase in costs, which left many operators struggling to stay financially afloat.

Whereas, in response, the Department secured once off ex gratia relief funds to the tune of R1,135 million to assist operators to mitigate the effect of Covid-19. The relief scheme is not intended to compensate for loss of income.

Whereas, the relief scheme provides an opportunity for the formalisation of the taxi industry. The benefits of using the relief process as a springboard towards formalisation is that, once the industry is formalised, it would be equipped for future participation in, amongst others, subsidisation.

Whereas, the Department solicited the services of the South African Revenue Service as the vendor and Implementation Agency to administer the relief scheme to the industry primarily due to their experience and capacity in dealing with such systems but also to authenticate the registration of these operators as business entities.