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Engineering News reports that the SA Poultry Association (SAPA) announced on Thursday that it would be submitting an application for certain chicken products to be zero-rated in terms of value added tax (VAT).
If approved they will be exempt from VAT. The application will be submitted in the middle of next month. This follows President Cyril Ramaphosa saying that the government would be increasing the number of essential food items exempted from VAT. “The benefit of VAT-free chicken is enormous, we expect a meaningful increase in consumption, giving malnourished people access to nutritious chicken products they previously could not afford,” SAPA broiler organisation head Izaak Breitenbach pointed out. The aim is to zero-rate those chicken products which are most often bought by low-income household and SAPA is working with retailers to identify these particular products. Currently, the planned submission list includes fresh and frozen chicken offal and frozen bone-in chicken. Value-added products, such as crumbed or spiced chicken and marinated chicken cuts will be excluded. SAPA made similar proposals in 2018, which largely foundered on the issue of individually quick-frozen (IQF) chicken pieces. In particular, the Government had been concerned about possible abuses of the definition of IQF pieces. SAPA is now seeking to avoid this by aligning its submission with the regulations.
- Read the full original of the report in the above regard at Engineering News
- Read too, VAT-free chicken: Sapa applies for no tax on some poultry products in SA, at The Citizen
- En ook, Vereniging vra weer vir BTW-vrye hoenderprodukte, by Maroela Media
Get other news reports at the SA Labour News home page