It’s unfair that South Africa’s poorest consumers have to pay an extra 15% on every chicken portion that they buy.
This is the reason that value added tax (VAT) should be removed from chicken, says Izaak Breitenbach of the South African Poultry Association (SAPA).
In an article in SAPA’s latest Poultry Bulletin, Breitenbach said chicken is the country’s most popular and most affordable meat. Chicken makes up 66% of all meat consumed in South Africa.
Breitenbach said the announcement by President Cyril Ramaphosa that the government plans to review the basket of essential food items that are exempt from value-added tax “signals multi-party support for an initiative that is aimed at reducing food costs for low-income households.”
Selected chicken products should be included in the expanded list of VAT zero-rated items, he said.
“Chicken remains the primary source of meat protein for millions of low-income individuals, including children from disadvantaged families.”
Chicken producers were doing everything possible to keep chicken prices low. The government should provide immediate price relief, and ensure that this essential protein source remains accessible to those who need it most, by removing the 15% VAT from the chicken portions most frequently purchased by poor households.
When the basket of VAT-free items was last reviewed in 2018, chicken was not exempted.
“Over the past six years, the need for VAT exemption has grown as food prices have risen sharply, both locally and globally. While food inflation may be decreasing, prices remain high and it is unfair that South Africa’s poorest consumers still have to pay an extra 15% on every chicken portion they buy,” Breitenbach stated.
The reality was that those consumers often had to make do without, as the VAT-inclusive prices put meat completely out of their reach. The Competition Commission had noted an increase in consumer purchases of VAT-exempt tinned pilchards, which are primarily imported, while chicken remains subject to VAT.
“We know that South Africans would much prefer to feed their families chicken, and we sincerely hope that this time around that wish will be granted,” Breitenbach said.
