Transport minister says the taxi industry must shift to automated, digital transactions

[mylesillidge]

Major South African industry must say goodbye to cash

Transport minister Barbara Creecy has said the South African taxi industry should stop using cash in favour of automated, digital transactions.

In her address at the 8th annual South African National Taxi Council (SANTACO) National Elective Conference, the minister said people in the rest of the world have realised that cash was too high risk.

 

[Bad Ballie]

Absolute nonsense, this is about forcing cash-based economies into tax compliance. Cash is not a risk, never has been and never will be - unless you are an idiot anyway. The push to 100% controlled digital transaction is part ofthe plan to control everything we do, it is in effect the move to modern day slavery, by a government of criminals who have have stolen more than the entire population combined has.

 

[PlutoForrest]

Telling stubborn taxi owners, some of whom have never been compliant to switch to digital, is like telling a toddler not to put fingers in an electric socket. I mean, these folks kill to own a territory, and now you want them to comply? Very audacious of DOT

 

[Kyle15]

Absolute nonsense, this is about forcing cash-based economies into tax compliance. Cash is not a risk, never has been and never will be - unless you are an idiot anyway. The push to 100% controlled digital transaction is part ofthe plan to control everything we do, it is in effect the move to modern day slavery, by a government of criminals who have have stolen more than the entire population combined has.

How is cash not a risk? In business, the risk that cash is stolen is massive, hence the need for armed CIT everywhere. In auditing the risk in cash based revenue is automatically higher due to higher fraud risk and in tax there's a risk that cash based transactions aren't declared. Don't really understand how cash could ever have no risk.

 

[crxboy]

Absolute nonsense, this is about forcing cash-based economies into tax compliance. Cash is not a risk, never has been and never will be - unless you are an idiot anyway. The push to 100% controlled digital transaction is part ofthe plan to control everything we do, it is in effect the move to modern day slavery, by a government of criminals who have have stolen more than the entire population combined has.

Came here to say this... government not getting their piece of the pie in one of the largest revenue generating businesses in the country. Tax is priority number one, then polish the turd until it looks like something that is "good" for the sheep.

 

[Corelli]

Absolute nonsense, this is about forcing cash-based economies into tax compliance. Cash is not a risk, never has been and never will be - unless you are an idiot anyway. The push to 100% controlled digital transaction is part ofthe plan to control everything we do, it is in effect the move to modern day slavery, by a government of criminals who have have stolen more than the entire population combined has.

Actually not.

In China its extremely difficult to actually get to use cash. Most places dont want it and only prefer digital payments. Last I saw they were phasing out machines that even accept cash for bus tickets and train tickets, and prefer the tap and go system.

The top eliminated of cash are Netherlands 3% still use cash, Norway also 3%, Singapore 3%, Sweden 5%, China 5%, Finlands (Banks have stopped handling cash), same with Denmark, South Korea and Hong Kong. In South Africa about 30% still use cash, and its narrowing fast, although Kenya still uses about 24% of its transactions as cash mainly taxis, street food and rent.

Now if youre a tax payer, the informal sector's dominant use of cash is actually reducing potential tax revenue which would ease the burden on everyone else. About R800 billion a year is the amount of tax that can be generated by eliminating cash, and forcing the informal sector (spaza shops, taxis, illicit trade etc) to be formalized.

 

[Mista_Mobsta]

Absolute nonsense, this is about forcing cash-based economies into tax compliance. Cash is not a risk, never has been and never will be - unless you are an idiot anyway. The push to 100% controlled digital transaction is part ofthe plan to control everything we do, it is in effect the move to modern day slavery, by a government of criminals who have have stolen more than the entire population combined has.

Agreed on the tax compliance side of things - maybe if the people are forced to pay taxes, like everyone else does, they will realise the importance of holding government accountable for stealing our hard earned money!

The sooner the poor and downtrodden stop voting criminals into power, the sooner we get more for our taxes!

 

[Bad Ballie]

Actually not.

In China its extremely difficult to actually get to use cash. Most places dont want it and only prefer digital payments. Last I saw they were phasing out machines that even accept cash for bus tickets and train tickets, and prefer the tap and go system.

The top eliminated of cash are Netherlands 3% still use cash, Norway also 3%, Singapore 3%, Sweden 5%, China 5%, Finlands (Banks have stopped handling cash), same with Denmark, South Korea and Hong Kong. In South Africa about 30% still use cash, and its narrowing fast, although Kenya still uses about 24% of its transactions as cash mainly taxis, street food and rent.

Now if youre a tax payer, the informal sector's dominant use of cash is actually reducing potential tax revenue which would ease the burden on everyone else. About R800 billion a year is the amount of tax that can be generated by eliminating cash, and forcing the informal sector (spaza shops, taxis, illicit trade etc) to be formalized.

You obviously don't comprehend what I said, and your reference to CHINA of all places proves it. As for more people paying tax, where have you been the last thirty years whilethe ANC looted 5.5 trillion rand from the taxpayer.

 

[XPD]

lol. Fat chance this will happen. The taxi industry does not like change and dictate to the government how things are done.

 

[Carl_Johnson]

Yarre I still remember the anxiety of sitting in those front seats of the taxi. Jy moet daai geld tel pappa! Fun times!

 

[Ninja'd]

I concur wholeheartedly.

Tired of sitting in front and expected to count people's f**king change.

 

[Flojo]

Look, lets call a spade a spade and recognize what this really is. I.e. Government wants their slice.
In this instance, personally, I am for it.

The middle and upper middle class and businesses has being paying and carrying everyone else for too long.

I think this is good on Government to look at this industry for revenue.
I probably am wrong in my thinking, but I feel, we cant keep subsidizing

 

[Corelli]

You obviously don't comprehend what I said, and your reference to CHINA of all places proves it. As for more people paying tax, where have you been the last thirty years whilethe ANC looted 5.5 trillion rand from the taxpayer.

Actually not 30 years. Because there you got it wrong. Technically its only the last 18 years.
You see apartheid left South Africa with a LOT of debt, thats how the Apartheid government imploded.

And then Thabo Mbeki paid it all off, other than about R0.5 trillion still left to be paid, we went unscathed through the world economic crisis (US housing crisis collapse), and the rand for once was actually strengthening and then BAM Zuma fired Mbeki.

Technically Mbeki only had 1 term and could actually come back.

No the ANC didnt sledge hammer our economy, that was Zuma...18 years ago.

Maybe youre still a bit young but under Mbeki we built 1.8 million houses, reduced debt to R0.5 trillion, the rand was R6.54 against the dollar (although its been weakening since 1978), SOE was one of the top rated, Eskom was one of the best rated and cheapest energy companies in the world, and we made a Budget Surplus (not a Budget Deficit of 8-10% under Ramaphosa. Unemployment was also down to 22% nationwide (34-35% today, and less than the 28% under PW Botha), and growth was 5.4% per year, far better than FW, Zuma and Ramaphosa (0.4%).

So defs not 30 years.

 

[porchrat]

LOL why would taxi operators willingly start paying tax?

 

[Corelli]

Look, lets call a spade a spade and recognize what this really is. I.e. Government wants their slice.
In this instance, personally, I am for it.

The middle and upper middle class and businesses has being paying and carrying everyone else for too long.

I think this is good on Government to look at this industry for revenue.
I probably am wrong in my thinking, but I feel, we cant keep subsidizing

The township economy is cash driven and doesnt contribute anything really to taxes if less than 1% of their market. If we can boost their tax compliance, then we could start dropping income tax.

We have honestly one of the worst tax greedy governments. They even slap you for hefty penalties even if you dont have to hand in an IRP5.

 

[Jet-Fighter7700]

as usual the criminals in the ivory tower make laws nobody follows,
people will just ignore them until you take cash away completely, and even then those taxi okes will use tokens or some other way to avoid carrying and using cash.

 

[bwana]

Look, lets call a spade a spade and recognize what this really is. I.e. Government wants their slice.
In this instance, personally, I am for it.

The banks also want their slice and forcing people away from cash gives them an even bigger one.

 

[ToxicBunny]

Hahahahahahaha thats a funny one Barb.

I mean I agree that it would be a good move and "regularise" the taxi industry and their revenues and all that...but fat chance they'll get on board with this.

 

[Corelli]

Hahahahahahaha thats a funny one Barb.

I mean I agree that it would be a good move and "regularise" the taxi industry and their revenues and all that...but fat chance they'll get on board with this.

The Western Cape has shifted for taxis to switch to digital payment systems already. In a way yes it means they will have to pay more tax, but from a business aspect it also adds more benefits too, easier financing of loans, etc.

 

[abruton]

This is how the government gets their fingers into the untaxed economy. They preach that cashless is good. The only people it is good for is the government. Always remember "Cash is King"