The South African Poultry Association (SAPA) has expressed strong support for President Cyril Ramaphosa’s recent announcement regarding the expansion of the basket of essential food items exempt from value-added tax (VAT). This initiative, which the President unveiled during his opening of parliament speech, has garnered multi-party support and aims to alleviate food prices for low-income households, a critical issue in a country where many struggle to afford basic necessities.
For a considerable amount of time, the country’s poultry industry’s trade association, SAPA, has pushed for the addition of chicken products to the list of zero-rated goods. The group emphasized that, at 66% of all meat consumed in South Africa, chicken is the most widely consumed and least expensive meat source. Owing to its widespread consumption in South Africa, chicken is an essential animal protein source, particularly for the millions of impoverished families that include children.
In a statement following the President’s announcement, SAPA emphasized that exempting targeted chicken products from VAT would have an immediate and positive impact on food affordability. “Chicken is South Africa’s most popular and most affordable meat source, accounting for 66% of all meat consumed in the country. It is, therefore, the main source of meat protein for millions of poor people, including children in poor families,” SAPA said. The association added that local chicken producers are already striving to keep prices as low as possible despite numerous challenges.
SAPA’s advocacy for VAT exemption is grounded in the belief that removing the 15% VAT from the chicken portions most consumed by poor households would bring significant price relief. “Removing the 15% VAT from the chicken portions most consumed by poor households would bring immediate price relief and ensure that essential food items remained affordable,” SAPA stated. This move, according to SAPA, would be a crucial step towards ensuring food security and affordability for the country’s most vulnerable populations.
In 2018, the VAT rate was raised to 15%, and this coincided with the last assessment of the zero-rated food basket. Due to their vital significance in the diets of millions of South Africans living in poverty, SAPA recommended to parliament during that review that targeted chicken products be included to the list of zero-rated commodities. The popular packs of individually packaged frozen chicken parts, a mainstay in many low-income households, were explicitly highlighted in this suggestion.
In line with the overarching objective of lowering living expenses for South Africans experiencing financial difficulties, SAPA has called for the addition of chicken to the extended list of goods free from VAT. The government may help families that are having a hard time making ends meet by cutting the price of staple foods like chicken. Wide-ranging benefits are anticipated from this program, including enhanced health and nutrition outcomes as well as increased economic stability due to increased disposable income for other necessities.
SAPA’s support of President Ramaphosa’s declaration is indicative of the organization’s dedication to promoting laws that assist South Africa’s low-income households. The proposed VAT exemption on some chicken products is a sensible and important step in making sure that everyone in South Africa, especially the impoverished, can continue to afford and have access to basic food items. The government of national unity must acknowledge the significance of chicken in the South African diet and include it in the growing list of foods that are zero-rated as it proceeds with its project.
