Experts divided over poultry industry’s call for VAT-free chicken

THE South African Poultry Association’s (SAPA) renewed call for chicken to be zero-rated for VAT has drawn mixed reactions from economists and industry analysts, as pressure mounts to ease the burden of rising food prices on low-income households.

- YOGASHEN PILLAY

SAPA confirmed that it has formally submitted a proposal to the National Treasury, requesting the removal of the 15% value-added tax (VAT) on chicken in the 2026 National Budget in February.

CEO of SAPA’s Broiler Organisation, Izaak Breitenbach, said on Wednesday that the proposal follows Treasury's call for submissions after a parliamentary committee last year recommended expanding the list of VAT-exempt basic foodstuffs.

"At present, tinned pilchards are the only meat protein zero-rated for VAT, with the remaining proteins on the list limited to plant-based or dairy options," he said.

"These alternatives cannot sufficiently meet the daily protein and micronutrient requirements needed for healthy growth and development, particularly in children."