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Durban - Taxi commuters staging a violent backlash to a R1 increase in fares in Ezakheni near Ladysmith are merely a symptom of a greater problem, a leading economist said on Tuesday.
Factories and businesses in the Ezakheni Industrial Estate are counting the cost of on-going civil unrest, with threats of violence pushing production losses into the millions.
Roads leading to and from the area have been blockaded by angry commuters, who have obstructed the road and burnt barricades.
Police continue to monitor the tense situation which boiled over yesterday when Public Order Policing Unit officers used rubber bullets to disperse crowds.
Economist Loane Sharp, of the Freemarket Foundation, said that violent protests like the one in Ezakheni should be welcomed.
Taxis and taxes
“South African consumers should be grateful for the minibus taxi industry, because violent opposition from taxi owners and commuters to increases in fuel prices keeps the government from raising taxes on fuel,” he said.
“Probably the single most unpopular tax is that on petrol and diesel. This is just another tax revolt like that in response to e-tolls, Eskom’s tariffs hikes and alike,” Sharp added.
“The government has reached the limit of what it can tax anyone. Only 4% of taxpayers pay 41% of all personal income taxes. South Africa is one of the skewest tax regimes in the world and top personal tax payers now number just 92 000.”
“Unfortunately these tax revolts draw no political attention. There is no introspection or self-reflection among the political elite.
SA public ‘not stupid’
"They tell us that cadre deployment and municipal corruption are ‘service delivery protests’ and they tell us that competition for jobs is ‘xenophobia’, but the South African public is not stupid. It will be interesting to see where the future sources of government largesse to politicians and civil servants will come from, but it will not come from taxes.
For four days, Community Safety MEC Willies Mchunu was silent on the protest, but on Tuesday he broke his silence.
In a statement, Mchunu expressed concerns over this matter, saying while the community had a right to protest, such protests should not interfere with the right of others to do their work peacefully and without any hindrance.
“We understand that people have the right to protest, but no one has a right to act against the law. Closing of roads, burning of tyres and closing of schools is contrary to what is provided for in the law and our Constitution,” he said.
Constructive dialogue
Mchunu urged members of the community to rather engage in a constructive dialogue with the leadership of the local taxi industry with a view of finding a lasting solution to their concerns.
“Already, a team of high-ranging officials from the Department of Community Safety and Liaison is holding high-level talks with all key stakeholders with a view of finding a solution this challenge.
“We urge the locals to give this initiative an opportunity to find a solution to this challenge”, said Mchunu.
