Build One South Africa (Bosa) has called for a comprehensive explanation of the R408 million “once-off taxi gratuity” included in the 2025/26 national budget, presented by Finance Minister Enoch Godongwana.

The substantial allocation has raised alarm within the party, which is seeking answers from Transport Minister Barbara Creecy about the justification, beneficiaries, and distribution criteria of the payment.

The R408 million gratuity comes at a time when South Africans are grappling with increased VAT, high fuel prices, and rising living costs. As a multibillion-rand industry that pays no tax, the taxi sector’s inclusion in the budget for such a large payout has sparked criticism over government priorities.

The funds earmarked for the taxi industry stand in stark contrast to the struggles faced by ordinary citizens and underfunded services.

“For a multibillion-rand industry that pays zero tax, this allocation is highly questionable,” Roger Solomons, BOSA acting spokesperson, said.

''While ordinary South Africans struggle under the weight of VAT increases, high fuel prices, and rising costs of living, the government is handing over hundreds of millions of rands to an industry that does not contribute its fair share to the country’s tax base.''

His statement reflects Bosa’s belief that such spending is problematic, especially in the face of South Africa’s pressing issues, including unemployment and economic stagnation.

BOSA leader Mmusi Maimane has taken the matter further by submitting a Parliamentary Question, urging Creecy to clarify the rationale behind the payout, identify the beneficiaries, and outline the criteria for its distribution.

The party’s primary concern is ensuring full transparency in how public funds are spent and that the allocation is not simply another politically motivated handout.

As Parliament prepares to vote on the national budget, Bosa is committed to holding the government accountable for its financial decisions.

“Taxpayers deserve to know whether this R408 million payment is a necessary intervention or simply another opaque expenditure benefitting a politically connected sector,” Solomons said.

As coalition parties are already divided over key spending decisions, BOSA is urging full transparency to prevent what they see as another example of wasteful government spending.

The party remains committed to fighting corruption and advocating for budgets that prioritises the real needs of the people over politically driven handouts.

hope.ntanzi@iol.co.za

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transport sector spending

BOSA calls for transparency on R408 million taxi gratuity in the 2025 national budget