FairPlay has renewed its call for the removal of 15% Value Added Tax (VAT) on frozen bone-in chicken portions, as well as on fresh and frozen offal. This is a targeted intervention to improve nutrition and affordability for low-income households across South Africa.
The call came at FairPlay’s most recent media roundtable focusing on food security and trade policy. FairPlay is supporting an application by the SA Poultry Association (SAPA) for VAT-free chicken to be included in this year’s budget.
“Removing VAT from these chicken products would deliver an immediate 15% price reduction on a staple source of protein, improve nutrition outcomes among food-insecure households, and strengthen rural economies,” said FairPlay founder Francois Baird.
The discussion reaffirmed FairPlay’s founding mission to combat predatory trade practices, particularly dumping, which has undermined poultry industries in other developing countries such as Ghana and Cameroon. South Africa’s poultry sector was highlighted as a strategic national industry making significant contributions to food security, employment, and rural development.
Izaak Breitenbach, CEO of SAPA’s broiler board, noted that South Africa faces severe household-level food insecurity, with chicken comprising approximately 66% of all meat consumed nationally. Child stunting affects nearly 28.8% of children under five, underscoring the link between poverty and malnutrition.
Because VAT is a regressive tax, it places a disproportionate burden on poorer households. VAT-free chicken was therefore framed as a nutrition intervention for desperate mothers and children, rather than a general consumer relief.
Cross-party political support for VAT-free chicken is expanding, with trade unions also expressing endorsement. The proposal has been acknowledged by President Cyril Ramaphosa, though final implementation rests with the Minister of Finance and the National Treasury.
According to Charles de Wet of law firm ENSAfrica and author of SAPA’s VAT-free submission, legal amendments to the VAT Act are technically straightforward once the decision is made. South Africa’s VAT collections remain strong and are growing. The estimated revenue foregone from zero-rating targeted chicken products is relatively small in fiscal terms. De Wet also noted that the zero-rated food basket has not been updated in over 25 years, and currently excludes all meat products despite their nutritional importance.
He said the estimated fiscal cost of R6 billion is small relative to total VAT collections and potential long-term gains in human capital and productivity.
FairPlay concluded that VAT-free chicken represents a practical, affordable, and high-impact measure to address South Africa’s nutrition and food security crisis.
The intervention is viewed as administratively simple, economically feasible, and politically achievable; the only remaining challenge is the decision to implement it.
