LETTER: VAT is one issue the chicken industry can agree on

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Consumers stand to benefit, directly and immediately, from the removal of the 15% VAT on the chicken portions most bought by low-income households

Consumers will be the ultimate losers if tariffs on chicken imports are removed. This has been the thrust of the SA poultry industry’s response to the call by chicken importers for a suspension of import tariffs — a move from which importers would derive immediate benefits.

First, the issue of consumers and food prices, on which Matthew bases his plea. The SA poultry industry has existed for more than 100 years and over that time we have ensured the production of safe, nutritious and low-cost chicken for the many South Africans for whom it has become increasingly popular and their main source of meat protein.

Matthew contends that tariffs protect “a handful of chicken producers”, clearly aiming at the large commercial operations. In fact, most of the job losses have been because imports put small-scale poultry producers out of business. They are the first to suffer and this would happen again. Some of this additional production capacity has lain idle because of the impact of the Covid-19 pandemic and now the war in Ukraine, but we have already expanded production by more than 1-million birds a week as part of our master plan commitment.

 

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