Labour on low UIF registration of taxi operators

7 August 2006

The Department of Labour has urged taxi operators to take advantage of the
Tax Amnesty for Small Business and register with the Unemployment Insurance
Fund (UIF) without worrying about being penalised for the previous
non-compliance.

The South Africa Revenue Services (SARS) recently announced a tax amnesty
for small businesses including taxi operators, to give them a chance to become
tax compliant without the large costs of previous tax, penalties and
interest.

According to SARS the tax amnesty being offered to small businesses from the
beginning of this month – August – took away the cost of having to pay many
years of back tax and allowed them to become tax compliant without punishing
them for past non-compliance.

Department of Labour spokesperson said it was of grave concern that only 2
647 taxi operators had to date registered with the UIF.

It was estimated that there were more than 135 000 taxi drivers in the
country.

“We want to encourage taxi operators to take advantage of this amnesty and
register in their droves at any labour centre nearest to them. Our officials
are on standby to assist them,” he added.

The Taxi Sectoral Determination, launched in April last year, extended
social protection to taxi drivers by including them in the UIF.

“The official introduction of UIF for taxi drivers, administrative staff,
rank (queue) marshals, fare collectors and cleaners on the 1st of July 2005,
further demonstrated our resolve as a department to strengthen social
protection to vulnerable workers,” he said.

Taxi owners were obliged in terms of the sectoral determination to register
their businesses and workers as well as to make the 2% monthly contributions to
the UIF.

Enquiries:
Mokgadi Pela
Cell: 082 808 2168
Kgomotso Sebetso
Cell: 073 2699 870

Issued by: Department of Labour
7 August 2006