* New bus shot at by occupants of minibus taxi

* Taxi operations to continue as normal for now

* Union to meet government on Thursday (Recasts witha bus being shot at)

JOHANNESBURG, Sept 1 (Reuters) - Occupants of a minibus taxi on Tuesday shot at one of the new buses launched in South Africa this week, following a dispute over government plans to upgrade the country's public transport system.

Taxi drivers met government officials earlier in the day to discuss their opposition to a new rapid bus service, and had called off a nationwide strike to protest against the new system that they fear will cripple their business.

Police said two people were injured when occupants of a minibus taxi shot at a bus they were travelling in from Johannesburg to Soweto township. One of the people shot was a policeman.

"The taxi that was following the bus starting shooting at it ... the two people were shot in their legs but are alright," inspector Kay Makhubela said.

Police were still investigating the incident and no one has yet been arrested.

The new bus service runs between Soweto, the biggest township in South Africa, and Johannesburg city centre, but will be expanded to soccer stadiums, and to other cities over the next five years.

Millions of mostly black South Africans use minibus taxis to travel between townships and cities, but the government has been trying to improve services to increase use of public transport, particularly ahead of the 2010 soccer World Cup. South Africa is investing 170 billion rand ($21.94 billion) to upgrade its transport system and road and rail networks.

The South African National Taxi Drivers Council (SANTACO) was to meet the government again on Thursday about its grievances to try to avert a strike.

"For now operations will continue as normal ... It would be premature to engage in a national strike without having relayed our story ... so they (government) get the essence of our argument," SANTACO spokesman Thabisho Molelekwa said. (Reporting by Alison Raymond, Vuyani Ndaba and Gordon Bell)

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