Online Reporter
Andile Tshuma and Michelle Musandinyoze, Zimpapers Writers
PUBLIC transport operators in Bulawayo have welcomed sweeping reforms announced by the Government to lower the cost of doing business in the sector, saying the measures will provide much-needed relief to taxi and kombi owners grappling with high operational costs.
Cabinet on Tuesday announced the slashing of a range of charges, including a 50 percent reduction in local authority parking fees, towing and clamping penalties and a drastic cut in the cost of vehicle number plates from US$500 to US$50.
In addition, the duty of US$23 000 on transit fuel was scrapped, alongside other interventions to streamline licensing and regulatory processes.
Chairperson of the Bulawayo Apex Council for the Public Transport Sector, Mr Busani Ngwenya, described the move as a timely intervention.
“We commend the Government for this bold and timely step. Operators were under severe strain, and this relief will go a long way in keeping businesses afloat. The cut in parking fees and the reduction of number plate costs is a particularly welcome development,” he said.
For years, operators have lamented that the prohibitive costs of registration and penalties discouraged new entrants and stifled growth in the transport industry.
Bulawayo City Transit Association vice chairperson, Mr Daniel Pondo, added that commuters would also benefit.
“If operators are cushioned from exorbitant charges, it means fares can stabilise, and we can improve services. Government has shown it is willing to listen to our challenges, and for that, we are grateful,” he said.
However, operators stressed that the issue of presumptive tax remained a key stumbling block. They argued the fixed-rate system imposed on commuter omnibus operators erodes revenues since it does not reflect the daily fluctuations in income.
Taxi operator and Vuka Uzimele Taxi Association (Vuta) member, Mr Nkosana Dube said: “The presumptive tax is one area that must be urgently re-examined. Operators are charged a fixed amount regardless of actual earnings, yet income varies daily.
We urge the Government to review this with the same spirit shown in the recent measures.”
Mr Pondo also noted that a fairer, income-based model would encourage compliance and help keep operators in business.
Finance and Economic Development Minister, Professor Mthuli Ncube, has already hinted that presumptive tax is under review as part of broader fiscal reforms to support profitability and sustainability in the transport sector.
For now, transport players in Bulawayo say they are optimistic that the Government’s “cutting mode” will create a more viable business environment. Still, they insist that full relief will only be realised once the presumptive tax system is fairly adjusted.
