Statement by Francois Baird
South Africa must not miss another opportunity to make nutritious chicken cheaper for millions of poor people.
The opportunity was missed in 2018, when chicken was not among the food items freed from South Africa’s 15% value added tax (VAT).That was a tragic mistake, because poor people have been paying an extra 15% on every chicken portion they have bought for the past seven years.
VAT-free chicken is up for consideration again in 2025. This gives the government the opportunity todo now what they didn’t do in 2018 – bring down the price of the chicken products which are an essential part of the diet of low-income households.
The need is even greater in 2025, because millions more people are poor, hungry and jobless. Chicken is South Africa’s most popular meat protein, providing vitamins and minerals to poor families and helping to combat child malnutrition.
The reasons why VAT should be removed from targeted chicken products were spelled out in a submission to government at the end of last year by the SA Poultry Association (SAPA) and the meat importers association AMIE.
That submission deserves urgent consideration in the 2025 budgeting process. VAT-free chicken is a pro-poor proposal, and the poor are in need of help.
SAPA and AMIE advocate the removal of VAT from the chicken products favoured by low-income households – frozen chicken portions and fresh and frozen chicken offal, such as heads, feet and livers.
Making chicken VAT-free is a practical, cost-effective, and socially just policy to alleviate poverty, improve nutrition, and drive economic growth. The potential revenue loss is small compared to the profound benefits for South Africa’s most vulnerable citizens.
Referring to the promise last year by President Cyril Ramaphosa that the new government would remove VAT from additional essential food items, the submission showed why chicken should be on the list for 2025.
The most important is that removing VAT fromchicken products would achieve targeted relief for the poor and needy. It would disproportionately ease the burden on poor and low-income households that are reliant on nutritious chicken as a crucial and healthy source of animal protein.
There are multiple other aspects that the government should consider.
- There are no meat items in the VAT-free basket. The case for including chicken is overwhelming.
- The need is huge, and urgent. In South Africa, food insecurity remains a pressing issue, with many families struggling to afford basic necessities.
- The impact would be immediate. Removing VAT from chicken should result in an instant 15% price drop. Chicken producers have committed to passing on the reduction; retailers are under intense public and government scrutiny, and would have to give this benefit to consumers.
- Malnutrition and stunting in children are particularly concerning. According to the HSRC, nearly 30% of children under five years old in South Africa are stunted, a condition resulting from chronic malnutrition that has long-term effects on physical and cognitive development.
- Zero-rating chicken would lower the tax burden on lower-income households.
FairPlay hopes that these arguments will prove persuasive for South Africa’s policy and financial planners as they finalise the national budget which is due to be presented next month.
For millions of poor and hungry South Africans, VAT-free chicken is long overdue.
- Francois Baird is founder of the FairPlay movement
