Should Parliament vote for chicken to be zero-rated from VAT?

The tussle continues for the call on chicken to be zero-rated from VAT.

On Wednesday, Parliament’s finance committee heard submissions from stakeholders on the recommendations of a panel of experts, who had resilient views for chicken to be included in the list of zero-rated VAT items.

The experts also recommended that white bread, bread flour, cake flour, sanitary products, school uniforms and nappies be zero-rated from VAT, in addition to the 19 items already zero-rated.

The panel estimated that its recommended items would represent a loss to the fiscus of about R4bn in VAT revenue.

READ: Strong calls for chicken to be on the VAT zero-rated list

Speaking to Africa Melane, standing in for Bongani Bingwa, Deputy Director-General at National Treasury Ismail Momoniat says it will cost the country a great deal for chicken to be added as a zero-rated item.

The panel, for example, looked at it and also came up with figures depending on how wide the zero-rating on different types of chicken products would be.

Ismail Momoniat, Deputy Director-General at National Treasury

But it could be up to R6 to R10 billion and it quite a significant revenue that could be foregone.

Ismail Momoniat, Deputy Director-General at National Treasury

He says we need to bare in mind that they had to raise VAT because of high expenditure levels.

Listen below to the full interview:


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