Taxi recapitalisation programme relaunched
The objective of the programme is to ensure that vehicles used to ferry commuters meet safety standards.
WITH road accident fatality figures remaining stubbornly high, government has reintroduced the Taxi Recapitalisation Programme in an effort to curb the scourge.
After a yearlong break, government has reintroduced the programme that will see old and unroadworthy taxis being scrapped at sites across the nine provinces over five years.
Transport Minister Fikile Mbalula unveiled the programme this week.
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Anthus Service 84 will, on behalf of the Department of Transport, spearhead the operational management of the scrapping process and establish scrapping sites in all provinces.
The objective of the programme was to ensure that vehicles used to ferry commuters meet safety standards.
“In enabling the effective phasing out of unsafe vehicles and enabling the introduction of vehicles that meet safety standards, government provides a capital subsidy in the form of a scrapping allowance. This allowance is only accessed by those who voluntarily surrender their vehicles that meet a pre-defined criteria to be scrapped,” the Minister said.
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Taxi owners will be compensated with R124 000 for each taxi demolished through the programme, an increase from the previous R91 100. The programme caters for taxis manufactured before 2007, with government aiming eliminate 135 894 such vehicles.
Mbalula said government remains committed to uplifting the taxi industry and is determined to create opportunities for the industry to grow.
“However, in doing so, the industry must deliver on its end of the bargain and ensure their members adhere to regulations and contribute to the country’s tax base like any corporate citizen. The special purpose vehicle responsible for managing the scrapping process must be registered for tax and must equally pay its dues.”
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