Taxi industry not avoiding tax, says SANTACO amid OUTA and DA allegations

SANTACO has rejected claims that most taxi operators do not pay corporate income tax, VAT or payroll taxes

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.