The poor would benefit most if 15% value added tax (VAT) is removed from selected chicken portions, according to Izaak Breitenbach of the SA Poultry Association.
In an interview with SAFM, Breitenbach said chicken was the “go-to meat protein” for poor people and low-income households. Making targeted chicken products VAT-free would increase access to chicken by poor people who either could not afford chicken or could not afford sufficient chicken to get the nutrients they need.
The VAT-free proposal was intended to address hunger and malnutrition among poor people, he said. The application that the poultry industry is to submit to Treasury next month would exclude the chicken products favoured by high-income consumers, such as fresh and boneless chicken.
The application would focus on all frozen bone-in chicken, as well as secondary products such as chicken hearts and livers.
Breitenbach said he was confident the full 15% price reduction would be passed through to consumers by producers and retailers.
In a separate statement, Breitenbach highlighted the economic impact of VAT-free chicken. He predicted that the poultry industry could expand production to meet increased demand.
“The benefit of VAT-free chicken is enormous, we expect a meaningful increase in consumption, giving malnourished people access to nutritious chicken products they previously could not afford.
“We’ve been producing affordable chicken for the masses for many years, and we continue working hard to create the conditions necessary to keep delivering on that promise.
“SAPA is collaborating with retailers to determine which products are most commonly purchased by low-income households, ensuring the proposal meets real consumer needs,” Breitenbach stated.
