Chicken Industry

VAT-free chicken is a real possibility

FairPlay founder Francois Baird is optimistic that chicken will at last be added to the essential foods that are exempt from South Africa’s 15% value added tax (VAT).

He told Kaya FM in an interview that the proposal had government support and that the focus would be on the practicalities of making chicken more affordable for low-income households.

“Our belief is that the government is in favour of this decision, and that they understand this is something that has to be done,” he said.

The poultry industry would be making a presentation to the government next month. The focus was likely to be on removing VAT from offal products such as chicken heads and feet, as well as frozen chicken portions.

Chicken was South Africa’s most popular and most affordable meat protein. The need for this protein in vulnerable households was shown by the fact, because of malnutrition, 27% of South Africa’s children under the age of five suffered from stunting.

The proposal could also increase the demand for chicken by 10%, which would benefit the entire poultry value chain from grain to chicken production.

“This is a win-win for the country,” Baird said.