Calls mount for tax-free chicken

The South African Poultry Association (SAPA) believes consumers have suffered enough by paying value added tax (VAT) for chicken portions.

While the association welcomes President Cyril Ramaphosa’s announcement that the new government will expand the basket of essential food items that are tax-free, the association is of the view that chicken must be added on the list, as it is the most affordable meat source that most households purchase.

An expand of the basket of essential food items

Ramaphosa started his opening of parliament speech with the announcement that the government is looking into adding more food items to being tax-free. The association said this is an indication that the government of national unity supports an initiative that will help to lower food prices for low-income households.

He, however, did not specify which food will be added on the basket.

According to the National Agricultural Marketing Council, the current basket of essential food items includes full cream milk, a loaf of brown bread, a loaf of white bread, banana, maize meal, margarine, peanut butter, rice, sunflower oil, ceylon/black tea, and white sugar.

ALSO READ: Food prices decreased in June for some low-income consumers in SA

‘South Africa’s most affordable meat’

The association said adding chicken products into the basket will help lift the burden off the shoulders of already struggling South Africans.

“Chicken is South Africa’s most popular and most affordable meat source, accounting for 66% of all meat consumed in the country.”

Due to the amount of people who consume chicken, the association said this as the main source of meat protein for millions of people. It is of the view that the country’s chicken producers are doing the best they can in keeping chicken prices affordable.

“Removing the 15% VAT from the chicken portions, most consumed by poor households, would bring immediate price relief and ensure that essential food items remain affordable.”

ALSO READ: Import rebates ‘will make chicken more affordable’

The need for more tax-free food has increased

The association said the need for VAT free food items has increased over the years due to food prices rising sharply.

“Food inflation might be falling, but food prices remain high.” They say the Competition Commission has also taken notice that more people have restored to buying tinned pilchards because it is VAT-free.

The basket of zero-rated food items was last reviewed in 2018, after the VAT rate was raised to 15%.

“Every year since 2018, South Africa’s poorest consumers have paid an additional 15% on every chicken portion they have bought. It is time to change that.”

ALSO READ: South Africans call for VAT to be scrapped for more food as prices soar