Removing the 15% VAT from selected chicken portions could provide critical support for poor households struggling with hunger and malnutrition. This is the view of Izaak Breitenbach, CEO of the South African Poultry Association (Sapa).
Speaking on SAFM, Breitenbach noted that chicken is the primary source of protein for many low-income households, and making targeted chicken products VAT-free could significantly improve access to this staple food.
Sapa’s proposal, which is set to be submitted to the Treasury next month, seeks to make essential chicken products VAT-free, excluding items typically purchased by higher-income households, such as fresh and boneless chicken cuts. Instead, the focus would be on frozen bone-in chicken and secondary products like chicken hearts and livers.
Breitenbach expressed confidence that, if approved, the VAT exemption would directly benefit consumers by lowering prices, with producers and retailers passing the savings onto consumers.
“The benefit of VAT-free chicken is enormous,” Breitenbach stated. “We expect a meaningful increase in consumption, giving malnourished people access to nutritious chicken products they previously could not afford.”
Breitenbach also highlighted that VAT-free chicken could stimulate growth in the poultry sector, leading to job creation and increased production to meet anticipated demand. He added that Sapa is collaborating with retailers to ensure that the products included in the proposal are the ones most frequently purchased by low-income households.
Addressing food security
Advocates argue that zero-rating chicken has become an urgent necessity amid rising hunger and malnutrition rates. Francois Baird, founder of FairPlay, told eNCA that child stunting – a measure of malnutrition – has increased from 27% to 28.8% since 2018.
He criticised the government for not acting on this issue earlier.
“Chicken is not a luxury; it is a must-have for children and pregnant mothers,” Baird said. “Now the government must make a decision. The urgency cannot be over-emphasised.”
He further pointed out that, beyond improving food security, the policy would likely boost rural employment if the poultry industry expanded production to meet increased demand.
With food security at the forefront of national concerns, the VAT-free chicken proposal is drawing attention as a potentially effective measure to provide affordable, nutrient-dense food to vulnerable populations, addressing hunger, malnutrition, and rural job creation in one strategic move.
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