Campaign for VAT-free chicken

Zululand Observer - Monday - - ZO BUSINESS - Larry Bent­ley

THE South African Poul­try As­so­ci­a­tion (SAPA) will con­tinue to campaign for chicken to be ex­empt from Value Added Tax (VAT) be­cause the as­so­ci­a­tion be­lieves it is in the in­ter­ests of the coun­try and es­pe­cially of lower in­come house­holds.

SAPA is dis­ap­pointed that the Woolard panel did not rec­om­mend the zero-rat­ing of chicken, but the process is not yet over.

A fi­nal de­ci­sion will prob­a­bly be taken later this year, and SAPA in­tends con­tribut­ing vig­or­ously to the pub­lic de­bate that has only just started. The thrust of SAPA’s sub­mis­sion is that chicken is the pri­mary pro­tein source for poor peo­ple and should not be sub­ject to VAT.

‘The most money spent by lower in­come house­holds is on chicken as a food item.

‘If chicken is zero-rated, it will soften the blow of the VAT rate in­crease on lower in­come house­holds,’ said the state­ment re­leased by SAPA.

The pro­posal is that zero-rat­ing only be ap­plied to ‘chicken on the bone’ to en­sure tar­geted re­lief for poor house­holds.

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