This year’s mini-budget was a good one, in most respects. Its big failing was the continued refusal by the government to help poor people by making chicken more accessible.
Key takeaways:
Eighth refusal in a row: The mini-budget again left VAT on the chicken portions that poor households rely on for protein.
15% extra on every portion: Millions of South Africans keep paying VAT on chicken portions and chicken liver, while fuel prices push food inflation higher.
A quick, affordable fix: FairPlay has urged Minister Godongwana to reconsider. Dropping VAT would bring prices down immediately for the households that need it most.
The mini-budget is essentially an update on the main budget delivered in February, and a look forward.
FairPlay pointed out that this is the eighth year in a row that the government has refused to remove value added tax (VAT) from the chicken portions that poor people rely on for their meat protein.
VAT-free chicken was a simple pro-poor measure, FairPlay founder Francois Baird said in a statement. Once again, finance minister Enoch Godongwana had missed the opportunity to implement it.
“He has rejected a move which has the support of all political parties, as well as President Ramaphosa. He has done so at a time when the move is affordable. And he has turned away from an initiative that would have stimulated growth and jobs,” Baird said.
“As a result, millions of poor South Africans will continue to pay an extra 15% on every chicken portion that they buy, and on every pack of chicken liver.
“This is a tragedy, for them and for the country. Hunger, poverty and unemployment have increased every year since 2018, when the government first refused to opt for VAT-free chicken. Petrol and diesel prices are rising inexorably, and will drive up food inflation. Hunger levels will go up further.
“It is a situation crying out for a quick and easy step to make food more affordable.”
FairPlay appealed to Minister Godongwana to reconsider.
“Drop VAT on chicken, and prices will drop immediately. Millions of poor people will thank you,” Baird concluded.
