South Africa — South Africa’s poultry industry has called on the government to remove the 15% value-added tax (VAT) on chicken, warning that rising prices are putting increasing pressure on households that rely on poultry as their main source of protein.
The South African Poultry Association (SAPA) said chicken should be classified as an essential food item rather than a discretionary purchase. According to the industry body, VAT is contributing to higher retail prices at a time when food inflation and overall living costs remain stubbornly high.
Chicken remains the most consumed animal protein in South Africa due to its relative affordability compared to beef, lamb, or fish. However, SAPA noted that escalating production costs are eroding this advantage. Higher feed prices, rising energy costs, logistics challenges, and inflationary pressures across the supply chain have made chicken increasingly less accessible—especially for low-income families who already spend a significant portion of their income on food.
SAPA said removing VAT on chicken would lead to immediate price reductions at retail level, enabling households to purchase chicken more frequently and maintain adequate protein intake. The association highlighted potential nutritional benefits, particularly for children, pregnant women, and the elderly, who depend on affordable animal protein to meet dietary needs.
Targeted tax relief approach
The proposed VAT removal would apply only to basic, unprocessed poultry products such as raw chicken portions, frozen bone-in cuts, and offal—items commonly purchased by lower-income consumers. Processed and ready-to-eat chicken products would continue to attract VAT, as these are generally bought by higher-income households and are not considered staple foods.
SAPA said this targeted approach would help limit the impact on government tax revenue while ensuring that relief reaches those most affected by food price pressures.
Economic and food security impact
Beyond easing household budgets, SAPA said lower chicken prices could stimulate demand for locally produced poultry, supporting activity across farming, feed manufacturing, processing, and distribution. Increased demand could also help sustain employment throughout the poultry value chain and provide more stable market access for small-scale and emerging producers.
The association linked the proposal to broader food security concerns, cautioning that continued price increases could reduce protein consumption and heighten nutritional risks nationwide.
As South Africa continues to grapple with cost-of-living pressures, the poultry industry said removing VAT on essential chicken products would be a policy decision focused on safeguarding access to affordable food rather than offering sector-specific relief.
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