The master plan’s commitment to VAT-free chicken comes at a time when millions of poor South Africans are struggling to afford a healthy diet.
The latest indicator is the immediate impact of recent food and fuel price increases. Because of this, South Africans are already experiencing heightened food insecurity, even before the increases hit harder later this year, according to the Bureau for Food and Agricultural Policy (BFAP).
Despite mounting evidence that urgent action is needed to address rising poverty and hunger, the government refuses to remove the 15% value added tax (VAT) from the chicken portions most consumed by low-income households. Chicken is the country’s most popular and most affordable source of meat protein.
The worsening situation for the millions of poor South Africans was detailed in the BFAP’s latest Food Inflation Brief. Its April report said the electricity price hike of 8.76% plus the April fuel price surges would impact retail food prices within the next two to three months.
“However, the immediate pressure of these rising utility and transport costs is already compromising the food security of South African households by eroding disposable income,” it said.
“The most immediate response is switching to less expensive, often nutrient-poor, and less-preferred foods and brands. Reduced meal sizes or fewer daily meals are also popular.
“Other strategies include intra-household buffering (i.e. adults reduce food intake in favour of children), buying food on credit, and social borrowing (i.e. seeking help from friends or relatives). To absorb the income shock caused by the electricity and fuel price increases, a lower-income household could thus be forced to reduce dietary diversity by purchasing less nutrient-dense food and consuming more maize meal.”
The loss in dietary diversity (e.g. reduced intake of quality protein, fibre, vitamin C and B and minerals such as potassium, selenium and zinc), would result in ‘hidden hunger’ where energy intake is maintained but essential micronutrients are reduced, the BFAP said.
Clearly, even though life has become immediately tougher for poor households, worse is yet to come. Continued government intransigence over VAT-free chicken would deprive them of what could literally be a lifeline.
