ORGANISED black business has stopped short of accusing the government of treating black and white entrepreneurs in the low-cost public transport sector differently.

National African Federated Chamber of Commerce and Industry (Nafcoc) president Lawrence Mavundla recently questioned why "bus companies that are owned by white people continued to receive a government subsidy" while the taxi industry, which is run by black people, is not benefiting from the subsidy.

The bus subsidy is currently being given to commuters who travel beyond 10km a trip.

Nafcoc deputy president Sinyosi Sikhosana said it was unfair to have buses that run on the same routes as taxis benefiting from the subsidy.

Sikhosana lashed out at people arguing that the taxi industry did not deserve a subsidy because it was unregulated and not paying taxes.

"Taxis are registered businesses and they do pay value-added tax and income tax," he said.

"In the taxi industry you will find that there are taxi associations that have leadership structures."

Department of Transport spokesman Tiyani Rikhotso said the government was in the process of scrapping the bus subsidy.

"The issue of the subsidy is contained in the public transport strategy, which will result in the country no longer having bus subsidy," said Rikhotso.

"It will result in the creation of a public transport subsidy that will benefit bus companies and taxis."

He said the new system would be rolled out by municipalities as part of the new integrated public transport network.

He could not, however, say when the new subsidy would be implemented.

University of Johannesburg transport department's Jackie Walters said the bus industry received the subsidy because it was tax compliant, travelled on a timetable, paid employees a minimum wage and was monitored by an independent regulator.

He said the taxi industry would probably have to abide by the same rules as buses to secure the subsidy.