Millions of poor South Africans will suffer if value-added tax (VAT) is increased, warns François Baird, founder of the FairPlay movement. He has called for frozen chicken portions and offal to be included in a revised VAT-free food basket, stressing that this is not the time to drive up food prices.
Baird was reacting to the proposed VAT increases outlined in finance minister Enoch Godongwana’s budget speech, which would see the rate rise from 15% to 15.5% this year and to 16% next year. He noted that the increase would exacerbate the “food insecurity crisis” already highlighted by Statistics South Africa, making it even harder for millions of people to afford basic nutrition.
“If these increases are approved by parliament, they will add to the hunger and misery of millions of poor South Africans,” Baird said.
Regardless of the VAT hike, he insists that tax must be removed from chicken portions, which are a staple food for low-income households.
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The cost of higher VAT
While the VAT increases may seem minor, Baird warns they will raise the cost of all essential goods, including transport, fuel, and food.
“The result will be that poor people will have even less money to buy more expensive food,” he explained. “That makes VAT-free chicken even more urgent.”
Chicken is the most consumed meat in South Africa, accounting for 66% of total meat consumption. It is also a critical source of affordable protein for low-income households. Baird stressed that nutritious, affordable chicken is essential to address the country’s high levels of child malnutrition.
Currently, nearly 30% of South African children suffer from stunting due to chronic malnutrition, which affects both their physical and mental development.
“Cheaper chicken is essential for a healthier South Africa,” he said. “Poultry producers have kept prices down for decades, and they remain committed to producing the lowest-cost quality chicken for consumers. Now, government must do its part.”
VAT-free food basket
Godongwana announced in his budget speech that he was expanding the basket of VAT zero-rated food items to include canned vegetables, dairy liquid blends, and organ meats from sheep, poultry, and other animals. However, the government’s latest proposal for a revised VAT-free food basket excludes frozen chicken portions, offering VAT relief only on chicken offal.
Baird stressed that frozen chicken pieces, such as individually quick frozen packs, are a crucial component of low-income diets and should not have been left out.
The initial budget proposal, which was not delivered last month, had referred to “variety meat products from sheep, poultry, goat, and swine”. In the revised statement, pork has been removed, and “variety meat products” has been narrowed to “organ meats,” which likely includes items such as chicken heads, feet, hearts, gizzards, and livers.
This exclusion of frozen chicken portions is a major concern for FairPlay, which has been campaigning for VAT-free chicken since 2018. Baird insists that removing VAT on chicken would directly benefit the poor, combat hunger, and help reduce the country’s high child stunting rates.
Despite the government’s reluctance to include frozen chicken in the VAT-free basket, FairPlay vows to continue its advocacy.
“The StatsSA research shows that hunger is affecting more people every year. This is not a time to force food prices up,” Baird said. “If the government does not act, the food insecurity crisis will only worsen. We will not stop fighting for VAT-free chicken.”
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