PROPOSED ZERO-RATING OF CHICKEN

PROPOSED ZERO-RATING OF CHICKEN

The South African Poultry Association (SAPA), in collaboration with the Association of Meat Importers and Exporters South Africa (AMIE SA), has submitted a proposal urging the National Treasury to include specific chicken products under the zero-rated items listed in the VAT Act. This initiative follows President Cyril Ramaphosa’s 2024 State of the Nation Address, which emphasized expanding essential zero-rated food items to support vulnerable South Africans amidst rising food prices.

The proposal highlights the critical role of chicken as an affordable and nutritious source of protein, particularly for combating malnutrition and food insecurity among young children, pregnant women, the elderly, and low-income households. It recommends zero-rating frozen bone-in chicken products, as well as fresh and frozen offal. Additionally, alternative measures, such as simplifying chicken definitions or applying reduced VAT rates to all chicken products, are suggested to ensure effective implementation while balancing fiscal impacts.

This joint effort by SAPA and AMIE SA has garnered widespread public support, reflecting the urgent need for practical solutions to alleviate poverty and improve food security in South Africa. SAPA looks forward to positive consideration of this proposal by the National Treasury.