Renewed calls for the government to extend Value-Added Tax (VAT-free) selections to include frozen chicken portions and offal have come up as the cost of basic food items in South Africa has continued to rise. This comes amid rising food prices and widespread concern about food security, especially for low-income households.
As the price of living continues to climb, the poultry industry, consumer advocacy groups, and non-profit organisations are urging policymakers to address the burden of VAT on these staple items.
Calls for VAT-Free Chicken are on the rise
Why Zero-Rating Chicken Matters
Chicken is a key protein source for millions of South Africans, especially in low-income households. According to industry experts, frozen chicken portions and offal are among the most affordable options for consumers, yet they remain subject to the standard 15% VAT. For families already stretched thin, this tax adds a significant financial burden.
The government currently zero-rates certain essential food items, such as bread, maize meal, and fresh vegetables, making them VAT-exempt. While whole, fresh chicken is also zero-rated, this benefit does not extend to frozen portions and offal—the forms most accessible to lower-income consumers.
Industry and Advocacy Efforts
The South African Poultry Association (SAPA) and organisations like FairPlay have been vocal in their appeals to the government. They argue that VAT on frozen chicken and offal disproportionately affects vulnerable households. These groups suggest that zero-rating these items could bring immediate relief to millions, improving food security and nutritional outcomes.
An important aspect of their argument is the practicality of frozen portions. Unlike fresh chicken, frozen products have a longer shelf life, making them more suitable for households without consistent access to refrigeration. Offal, often overlooked in policy discussions, is also a crucial protein source for many families.
FairPlay founder Francois Baird noted that the inclusion of frozen chicken portions in the VAT exemption list could “make a real difference in people’s lives, helping them to stretch their limited incomes further.”
Economic Challenges
Despite the clear benefits for consumers, some critics argue that zero-rating additional items could impact government revenue. VAT contributes significantly to South Africa’s tax base, and exemptions need to be carefully weighed against their fiscal implications.
However, proponents of the change contend that the economic benefits of improved food security—such as reduced healthcare costs associated with malnutrition—could offset the short-term revenue losses. Additionally, with unemployment rates high and poverty widespread, failing to address food affordability could exacerbate existing inequalities.
What Needs to Happen
For the government to consider extending VAT exemptions, evidence-based arguments are critical. SAPA, FairPlay, and other stakeholders are calling for robust research to quantify the potential impact of zero-rating frozen chicken portions and offal. By demonstrating how this policy shift could alleviate financial pressure on households while maintaining economic stability, they hope to persuade policymakers to take action.
Consumer advocacy groups are also urging the public to make their voices heard. Highlighting the real-life impact of VAT on essential food items could add moral weight to the technical and economic arguments already being presented.
Broader Implications
The push for VAT-free chicken is part of a larger conversation about food affordability in South Africa. With inflation driving up the cost of living, expanding the list of zero-rated items could provide immediate relief to many households.
This debate also underscores the importance of ensuring that public policy reflects the lived realities of South Africans. Food security is a fundamental issue that affects not only individual well-being but also the nation’s broader social and economic stability.
As the conversation continues, it is clear that the stakes are high. Extending VAT exemptions to frozen chicken portions and offal may not be a panacea for South Africa’s economic challenges, but it represents a meaningful step toward reducing inequality and improving the quality of life for millions of people.
By addressing this critical issue, South Africa has an opportunity to reaffirm its commitment to supporting the most vulnerable members of society. The question now is whether policymakers will rise to the occasion.
Also read: 10 Budget-Friendly Grocery Shopping Tips and Tricks
