The submission the government is considering, advocates the removal of VAT from the chicken products favoured by low-income households – frozen chicken portions and fresh and frozen chicken offal, such as heads, feet and livers.
Making chicken VAT-free is a practical, cost-effective, and socially just policy to alleviate poverty, improve nutrition, and drive economic growth, said FairPlay founder Francois Baird.
“The potential revenue loss is small compared to the profound benefits for South Africa’s most vulnerable citizens.”
The submission, by the SA Poultry Association (SAPA) and the meat importers association AMIE, showed why chicken should be on the VAT-free list for 2025.
“The most important is that removing VAT from chicken products would achieve targeted relief for the poor and needy. It would disproportionately ease the burden on poor and low-income households that are reliant on nutritious chicken as a crucial and healthy source of animal protein.”
Baird said there were multiple other aspects that the government should consider.
- There are no meat items in the VAT-free basket. The case for including chicken is overwhelming.
- The need is huge, and urgent. In South Africa, food insecurity remains a pressing issue, with many families struggling to afford basic necessities.
- The impact would be immediate. Removing VAT from chicken should result in an instant 15% price drop. Chicken producers have committed to passing on the reduction; retailers are under intense public and government scrutiny, and would have to give this benefit to consumers.
- Malnutrition and stunting in children are particularly concerning. According to the HSRC, nearly 30% of children under five years old in South Africa are stunted, a condition resulting from chronic malnutrition that has long-term effects on physical and cognitive development.
- Zero-rating chicken would lower the tax burden on lower-income households.
“FairPlay hopes that these arguments will prove persuasive for South Africa’s policy and financial planners as they finalise the national budget which is due to be presented next month,” Baird said.
