The South African National Taxi Council (SANTACO) has dismissed claims that the taxi industry does not pay tax as “misguided and shallow,” saying most operators comply by paying personal income tax individually.
The taxi industry has faced repeated accusations of failing to pay its fair share.
The Democratic Alliance (DA) previously cited a 2021 parliamentary reply showing the entire minibus taxi sector contributed only around R5 million in tax, despite estimates placing its annual revenue at R90 billion.
More recently, Organisation Undoing Tax Abuse (OUTA) echoed these concerns, urging the government to expand the tax base by formalising both the taxi and informal sectors.
SANTACO Explains Tax Structure
SANTACO spokesperson Mmatshikhidi Rebecca Phala said such claims ignore the structure and taxation of the industry.
“The perception is misguided and shallow. The taxi industry mainly comprises operators who run their businesses as sole proprietors. Operators run their businesses as individuals and pay taxes as individuals.” Phala said.
She added that SARS issues operators tax clearance certificates, which they use to apply for and renew operating licenses where required.
Call for Tax Reforms
Phala said the current tax framework does not fully accommodate the informal nature of the industry and called for reforms.
“Currently, a large segment of the taxi industry does not participate in the greater companies’ tax regime. The tax structure needs to be re-examined to close this loophole,” she said.
She emphasised that people should not view the taxi industry like a public company.
“It is an individualised business whose operators have organised themselves into taxi associations,” Phala added.
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