The South African Poultry Association (Sapa) has renewed its bid to have chicken zero-rated for VAT, submitting a fresh request to National Treasury for inclusion in the 2026 National Budget.
The association has made similar appeals in previous VAT reviews but says rising food insecurity and the widening gap between income and basic nutrition have made the intervention more urgent. It says zero-rating chicken would also stimulate demand within the labour-intensive value chain and support job stability and growth in the sector.
Treasury called for proposals following a parliamentary committee meeting last year, which recommended the expansion of the list of essential foods exempt from VAT.
Removing VAT from chicken would narrow the income-to-food-cost gap, ease pressure on low-income households and make government feeding schemes, including the National School Nutrition Programme, more cost-effective, Sapa said in a statement this week.
“This measure would reduce the cost of the country’s most widely consumed protein source and provide direct relief to low-income households facing increasing food insecurity,” said Izaak Breitenbach, CEO of Sapa’s Broiler Organisation.
Presently, 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. Sapa has argued that these alternatives cannot sufficiently meet the daily protein and micronutrient requirements of consumers, especially for the healthy development of children.
“Chicken is the most affordable and widely consumed animal protein among low-income households. Zero-rating chicken would reduce the cost of a staple food relied on by millions of South Africans and improve both affordability and nutrition quality for vulnerable households,” Breitenbach said.
Economic data presented in the submission to Treasury emphasises the gap between income and food costs. The average monthly household food basket costs R5 440.60, while the national minimum wage provides a maximum of R5 297.36 per month. After essential expenses such as electricity and transport, households fall 38% short of what is required for a basic nutritious diet. The Child Support Grant of R560 is below the food poverty line of R796 and covers only 59% of a child’s minimum dietary needs.
The submission also connects zero-rating chicken to public health outcomes, citing child stunting rates of 28.8% nationally and 36% among the poorest households. Low consumption of animal-source protein is a major factor in these figures. Child stunting is caused by chronic malnutrition.
Sapa submitted that zero-rating chicken would improve child growth, support maternal and infant health, prevent iron-deficiency anaemia, and shift diets away from ultra-processed meats and starch-heavy meals.
“Zero-rating chicken would also stimulate demand within a labour-intensive value chain, support job stability and growth and reduce input costs for institutions and feeding schemes,” said Breitenbach.
The proposal includes a specific definition of ‘chicken’ for VAT purposes, covering frozen meat on the bone and uncooked offal commonly purchased by low-income households, while excluding processed or ready-to-eat products to ensure that the relief is targeted.
“Our submission aligns with government’s commitment, reiterated in the 2025 Medium-Term Budget Policy Statement, to support low-income and vulnerable households through social protection. This request is a targeted intervention aimed at improving access to an affordable animal protein and strengthening the nutritional foundation for future generations.
“The proposal presents a clear, practical intervention that enhances affordability, improves nutrition, and aligns fiscal policy with the needs of vulnerable households,” said Breitenbach.
