Department of Transport
27 August 2019
The scrapping of old taxi vehicles is to resume.
The transport department confirmed this in a statement on the launch of taxi scrapping as part of a revised Taxi Recapitalisation Programme.
No scrapping of taxis has occurred in the past year.
“The Department has appointed a company, Anthus Service 84, through a competitive bidding process, to provide operational management of the scrapping process and establish scrapping sites in all the Provinces.”
A special purpose vehicle jointly owned by Anthus Service 84 and the taxi industry is to be set up.
“The taxi industry will own 60% of this new entity and the proceeds derived from the project will be channeled to a Taxi Development Trust.”
A capital subsidy in the form of a scrapping allowance is provided to taxi owners who “voluntarily surrender their vehicles that meet a pre-defined criteria to be scrapped”.
Earlier this year, the scrapping allowance was increased from R91 100 to R124 000 per vehicle.
The department emphasized, though, that the taxi industry must “deliver on its end of the bargain and ensure their members adhere to regulation and contribute to the country’s tax base like any corporate citizen”.