Tax consulting firm AJM speculates that VAT-free chicken could be included South Africa’s annual Budget later this month.
In a budget preview published in Business Day, the firm noted that the South African Poultry Association (SAPA) had applied to the government in 2024 to have certain chicken products zero-rated for value-added tax (VAT) purposes to make this essential food more affordable.
“Public comments on this proposal highlighted the significant economic benefit of VAT-free chicken. It is forecasted that the poultry industry could expand production materially to meet increased demand and improve South African citizens’ accessibility to chicken products.
“Treasury is expected to review the proposal carefully, and the final decision will likely only be made this month,” the article stated.
The answer will be revealed when Finance Minister Enoch Godongwana makes his Budget statement on 19 February.
