The South African Poultry Association (SAPA) has come out in full support of the removal of value added tax (VAT) from chicken portions, saying it would benefit millions of poor people.
In a statement, SAPA said chicken should be included in the review of VAT-free food items promised by President Cyril Ramaphosa.
“Chicken is South Africa’s most popular and most affordable meat source, accounting for 66% of all meat consumed in the country. It is therefore the main source of meat protein for millions of poor people, including children in poor families.
“South Africa’s chicken producers are already doing everything in their power to keep chicken prices down. Removing the 15% VAT from the chicken portions most consumed by poor households would bring immediate price relief and ensure that essential food items remain affordable,” SAPA said.
It noted that, because of differences among the 2018 panel that conducted the last review of VAT-free items, chicken was not included in the revised list.
“In the last six years the need for VAT exemption has increased as food prices have risen sharply, locally and globally. Food inflation might be falling, but food prices remain high.
“The Competition Commission has noted that consumers are buying more tinned pilchards, which are mainly imported but VAT-exempt, while chicken is not.
“Every year since 2018, South Africa’s poorest consumers have paid an additional 15% on every chicken portion they have bought. It is time to change that.” SAPA said.
