GNU to cut VAT on chicken—Which foods are next?
In his Opening of Parliament Address, President Cyril Ramaphosa announced that the GNU would broaden the list of food items exempt from VAT.
The Democratic Alliance (DA) has praised the South African Poultry Association (SAPA) for supporting the Government of National Unity’s (GNU) decision to eliminate VAT on chicken.
For years, the DA has called on the government to add more VAT-exempt items to help struggling homes cope with the rising cost of living.
SA POULTRY ASSOCIATION ENDORSES REMOVAL OF VAT FROM CHICKEN
In 2022, the DA also launched a petition, which allowed the public to comment on and support the proposal.
In 2022, the South African Informal Traders Alliance (SAITA) also called for government to remove VAT and other tariffs on chicken products.
DA spokesperson Willie Aucamp said chicken is not only South Africa’s most widespread meat but also an important source of cheap protein for millions of low-income families, including vulnerable children in poor homes.
Aucamp said the far-reaching impact of removing 15% VAT on these products should be emphasised.
“This will ease the burden on consumers while ensuring the availability and affordability of vital nutrients for the neediest population groups.
“Many South Africans remain concerned about cost-of-living issues. Exempting chicken from VAT is a decisive step towards addressing these challenges and promoting economic equity nationwide,” Aucamp said.
The following basic foodstuffs are currently zero-rated for VAT in South Africa:
- Brown bread
- Maize meal
- Samp
- Mealie rice
- Dried mealies
- Dried beans
- Lentils
- Pilchards/sardinella in tins
- Milk powder
- Dairy powder blend
- Rice
- Vegetables
- Fruit
- Vegetable oil
- Milk
- Cultured milk
- Brown wheaten meal
- Eggs
- Edible legumes and pulses of leguminous plants
GNU WANTS TO ADD MORE ITEMS
During his Opening of Parliament Address on 18 July, President Cyril Ramaphosa announced that the Government of National Unity (GNU) would look to expand the range of essential food items exempt from VAT. These include protein-rich foods like chicken and peanut butter.
Ramaphosa said the GNU would undertake a comprehensive review of administered prices, including the fuel price formula, to identify areas for price reduction.
The president said a robust and inclusive strategy to alleviate poverty is essential to safeguarding and assisting society’s most vulnerable as South Africans continue to grapple with the high cost of living.