Question: Who can apply for the scrapping allowance?

1.Taxi Operators with a valid Operating Licence or Permit wishing to exit the taxi industry.

2. Taxi Operators with a valid Operating Licence OR already having applied for conversion with a permit wishing to recapitalise their business by scrapping their OTV (Old Taxi Vehicle) and purchasing a New Taxi Vehicle.

Question: What is an OTV?

Answer: The Old Taxi Vehicle (OTV) definition includes any minibus taxi vehicle that was either purchased, acquired or manufactured during any date on or before the 4th of September 2006 as indicated in the Government Regulation 891 dated 4th of September 2006 of the National Road Traffic Act No 93 of 1996 as amended and the correction notice of the said Regulation as published, and any amendments thereof.

Question: Where should I apply?

Answer: Each province in South Africa has a provincial Main Centre located in:
1. Eastern Cape :Old Government Garage
King Williams Town
Zwelitsha, 5608
2. Free State:11 Yellow Street
Botshabelo, 9781
3. Gauteng: Stand 51, Rietfontein
North Reef Road,


108 Diamond Street
Rosslyn, Pretoria
4. KwaZulu-Natal:Yaborough Road,
Pietermaritzburg, 3201
5. Limpopo:Seshego Industrial Park,
Unit 13,Freedom Drive,
Zone 6, 0700
6. Mpumalanga:25 Katoen Street
White River
7. Northern Cape:37 Central Road, Cnr Central& Woodburne,
Beaconsfield, Kimberley, 8300
8. North West: Suite 9A
Commissioner Place
Mafikeng, 2745
9. Western Cape:18 Bloemhof Road Ottery

Question: What documents are required for the application?

Answer: Completed TSA Application for Scrapping Incentive Form and Banking details form (Form 2).
Original AND Certified Copies of the following documents:

  • Green South African bar-coded Identity Document (ID) / valid Passport

  • Company or Close Corporation registration certificate

  • Vehicle Registration Certificate

  • Operating Licence

  • Proof of Registration Member/Non-Member of a Taxi Association

  • Proof of Applicant bank account details. Any of the following:

    • 3 month bank statement or

    • Cancelled cheque or

    • Letter from bank stating all banking details on official bank letterhead

Question: Why should I scrap my taxi?

Answer: You should scrap your taxi if it is old and unsafe or if you would like to recapitalise.

Question: Can I re-apply for an operating licence with the TSA?

Answer: No. The TSA does not issue operating licences. You will need to consult the operating licence board in that regard.

Question: Can I exit the taxi industry after the scrapping of my taxi(s)?

Answer: Yes. The decision to exit or remain in the taxi industry lies entirely with you.

Question: Where do I start the process?

Answer: Fixed main centre, our mobile service units, or on this website.

Question: Where do I get an application form?

Answer: From our main centre, mobile service units.

Question: Can I apply for scrapping if my Operating Licence has expired?

Answer: Please contact our call centre or your nearest TSA office for assistance.

Question: Can I apply for scrapping if my taxi is already deregistered?

Answer: Please contact our call centre or your nearest TSA office for assistance.

Question: Can I apply for scrapping if my taxi has recently been involved in and accident?

Answer: Please contact our call centre or your nearest TSA office for assistance.

Question: How long will the application process take?

Answer: About 30 - 40 minutes

Question: How long will the entire process take from application stage till payment?

Answer: Two weeks if all your documents are in order.

Question: Do I need a bank account to qualify?

Answer: Yes.

Question: Does the account have to be in my name?

Answer: Yes.

Question: What do I do if I don’t have a bank account?

Answer: You need to open an account before submitting your application.

Question: Can I hand in my OTV regardless of its condition?

Answer: No. There is a minimum acceptable standard regarding the condition of the vehicle. The vehicle needs to be in operational condition. Please contact the Main Centre manager for further assistance.

Question: Are there any restrictions to the number of scrapping allowances I may apply for?

Answer: Yes. Your applications may not exceed the number of operating licences you have.

Question: Will the money be taxed?

Answer: The receipt of payment of the scrapping allowance will be subject to the taxes and bank charges.

Question: How will I receive the scrapping allowance?

Answer: The TSA will deposit the money directly into your bank account.

Question: Can I use the money as a deposit on a newer taxi?

Answer: Yes.

Question: Will I have to bring the taxi to a certain place or will you collect it?

Answer: The TSA will advise you of the date and venue for the inspection of your OTV. You will be required to ensure that your OTV is taken to that venue on the specified date.

Question: Will I have to pay any application fees?

Answer: No – the process is free of charge

Question: Will I have to pay any scrapping fees?

Answer: No.

Question: Is there a deadline for the application process?

Answer: The TSA will deal with applications for the scrapping allowance till 31st of August 2013

Question: Can I bring a taxi that has only been transporting school children?

Answer: No. The OTV needs to be registered with the Provincial Operating Licence Board and the operator needs to be registered as a member or non-member of a taxi association.

Question: Will my taxi be scrapped if it is roadworthy?

Answer: Yes. All OTV’s will be scrapped.

Question: Are there any parts that I need to remove from the taxi before I hand it in?

Answer: No. The OTV should be handed in as a complete and whole vehicle.

Question: Do I have to come as the owner or can I send a representative on my behalf?

Answer: You can send a representative provided that the representative has a proxy/representative letter signed by you, as well as his identity document.

National Land Transport Transition Act