The South African Poultry Association (SAPA) is taking significant steps to make chicken products more accessible to low-income households by seeking a value-added tax (VAT) exemption. This application, which is expected to be submitted to Parliament next month, aligns with President Cyril Ramaphosa’s ongoing efforts to support the country’s financially disadvantaged. SAPA believes that removing VAT from chicken could make a substantial difference in food affordability, especially for individuals in lower income brackets who struggle to include enough poultry in their diets.
“This VAT-free initiative could be a meaningful change for those affected by rising food costs,” said Izaak Breitenbach, CEO of SAPA. Breitenbach noted that although chicken is a good source of protein for many South Africans, a large percentage of the population cannot afford their consumption. “Those who purchase chicken will undoubtedly receive more chicken if it is exempt from VAT. However, it will also enable others who previously lacked the funds to purchase chicken to do so,” he underlined. Given that chicken is still one of the most widely consumed and reasonably priced protein sources in the world, this viewpoint represents a pragmatic way to tackling food insecurity.
The VAT exemption, if implemented, could work to combat food inflation, which has been a growing concern for South Africa. Food prices have seen steady increases in recent years, and basic items such as maize, rice, and vegetables continue to rise, putting strain on household budgets. With chicken being a staple protein for many families, a VAT exemption would help make it more affordable. For individuals who already rely on chicken as a primary food source, this change could provide some financial relief. For others, particularly those who can rarely afford it, this could mean having a healthy protein source as a more regular part of their diet.
Breitenbach’s remarks highlight SAPA’s goal of reducing food costs for low-income households by increasing their access to reasonably priced, high-quality protein. Furthermore, by boosting demand, VAT-free chicken may help small-scale poultry producers and suppliers. More individuals being able to purchase chicken products could benefit local poultry industries and spur economic expansion. A more sustainable industry might be created by giving farmers and producers a larger platform to sell their goods through the growth of the local market.
SAPA’s move also aligns with other South African initiatives aimed at mitigating the effects of food poverty. In recent years, government bodies have implemented various food security programs, including school feeding schemes and agricultural subsidies, aimed at improving access to nutritious food for disadvantaged communities. However, these programs do not always include animal protein, especially for adults outside of school programs. Adding VAT-free chicken products could complement these programs, helping alleviate the dietary gap in lower-income households and providing a more rounded nutrition plan for South Africans.
Policymakers and members of the general public will be keenly monitoring SAPA’s proposal preparation. It would be simpler for South Africans to maintain a balanced diet if the VAT exemption were granted, joining a number of other nations that have implemented comparable tax breaks for necessities. Particularly for those most impacted by poverty, the organization’s effort serves as a reminder of the significance of easily accessible and reasonably priced meals.
