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Thread: tax recap war drums pounding

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    just me duncan drennan's Avatar
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    taxi recap war drums pounding

    It looks like the taxi's are threatening war (ala security guard strike) if the recap goes ahead in its current form. After a tv news story the other day I realised how negatively this can impact on a lot of taxi owners' businesses.

    The NTA’s main gripe with the process is affordability. According to the programme, R50 000 is what each taxi owner will be given by government, at a total cost of R7,5bn. The R50 000 would be used as a deposit on a new approved specialised vehicle. Mabaso says these new vehicles are far too expensive, ranging in price from R250 000 to R300 000 meaning the consumer will pay a lot more for taxi fares.

    Full story on MoneyWeb
    I don't know what the taxi owners earn a day, but the R250k difference they have to pay to purchase a vehicle seems like quite a long jump. At the end of the day the commuter will feel the price pressure.

    How many people will this put out of business? What is the implication for public transport?

    AFAIK most countries have heavily subsidised public transport - are there any subsidies for taxi fares?
    Last edited by Dave A; 31-Oct-06 at 10:32 AM.
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