SANTACO has rejected claims that most taxi operators do not pay corporate income tax, VAT or payroll taxes
Image: Ayanda Ndamane / Independent Media
The South African National Taxi Council (SANTACO) has rejected claims that most taxi operators do not pay corporate income tax, VAT or payroll taxes, saying the allegations are misleading and based on a misunderstanding of how the industry is structured.
This comes amid ongoing debate in the industry, with the Organisation Undoing Tax Abuse (OUTA) and the Democratic Alliance (DA) having previously alleged that parts of the taxi sector operate outside the formal tax system due to its largely cash-based and informal nature.
SANTACO said the overwhelming majority of taxi operators are registered as sole proprietors and are therefore taxed under personal income tax rather than corporate tax.
The organisation argued that claims suggesting widespread non-compliance fail to take into account the legal and operational structure of the industry, where operators function as individuals rather than incorporated companies.
"The South African National Taxi Council (SANTACO) has noted with concern the repeated claims by the Organisation Undoing Tax Abuse (OUTA), supported by other formations, alleging that the taxi industry exploits a 'tax loophole' and that most taxi operators do not pay corporate income tax, VAT or payroll taxes."
"These allegations are factually inaccurate, legally flawed and create the false impression that the taxi industry operates outside South Africa's tax regime."
The organisation added that operators are required to comply with tax obligations when applying for or renewing operating licences, and that claims about widespread non-compliance are not supported by verified data from the South African Revenue Service (SARS).
"We cannot remain silent while an industry that transports millions of South Africans every day is repeatedly subjected to misleading allegations disguised as fact.
"Criticism must always be welcomed, but it must be truthful, evidence-based and grounded in the law. SANTACO will robustly defend the integrity of lawful taxi operators against narratives that unfairly criminalise an entire industry," SANTACO President Abnar Tsebe.
The organisation said that while it acknowledges that some individuals may fail to comply with tax obligations, it rejects attempts to generalise such cases across the entire sector.
"SANTACO acknowledges that, as with any sector, there may be individuals who fail to comply with tax or regulatory obligations. However, it is both unfair and irresponsible to use isolated instances to indict an industry that transports millions of South Africans daily."
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