Campaign for VAT-free chicken
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.