Ahead of this week’s budget, FairPlay wrote to five South African government ministers explaining the increasingly urgent need to remove the 15% value added tax (VAT) from certain chicken portions.
Letters went to Finance Minister Enoch Godongwana, Trade, Industry and Competition Minister Ebrahim Patel, Agriculture Minister Thoko Didiza and Health Minister Joe Phaahla. A copy of the letter to the Finance Minister was sent to Mondli Gungubele, Minister in the Presidency, urging him to bring the matter to the attention of President Cyril Ramaphosa.
The theme of all the letters was urgency – rapidly rising input costs, including South Africa’s intermittent electricity supply, meant that chicken would inevitably become more expensive. Removing VAT from the chicken portions favoured by low-income households was essential to lower prices for the poorest consumers.
Chicken was “the backbone of South Africa’s food security,” FairPlay founder Francois Baird told the ministers. Chicken comprised 66% of the country’s meat consumption, and was a staple in the diet of the poor, he said.
“The need for VAT-free chicken has never been more urgent, for consumers and poultry farmers, particularly small farmers, under more pressure than in 2023,” Baird wrote.
The budget presented by Minister Godongwana on Wednesday showed that the government remains reluctant to introduce VAT-free chicken. FairPlay, in turn, has vowed to continue its pro-poor drive to keep chicken prices down for those struggling to feed their families.
