13 March 2025, AMIE
Dear AMIE member,
As you are aware, the Budget Speech was delivered by Minister of Finance, Enoch Godongwana yesterday.
To give context at a high level, the following process is followed for a budget to be approved and therefore implemented by the government :
- The Minister presents to the Parliament, joint seating
- Parliament debates the budget
- Parliament votes to approve or reject the budget in its entirety or certain sections
- Depending on the outcome of the voting process, the budget is either implemented as presented or with amendments, or NOT approved means sending the Minister and Treasury back to the drawing board.
Of key importance to AMIE is the outcome of the Zero VAT Rate submission collaboration by AMIE and SA Poultry Association (SAPA ), which was submitted to Treasury towards the end of last year. The submission centred around the request to Zero VAT Rate Chicken offal and Chicken portions.
As can be seen from the budget speech, the request for offal has been granted subject to the approval of Parliament. As you may be aware, offal consumption has increased significantly over the last while and continues to grow – driven by the tight disposable income for the majority of the consumers. The Zero VAT Rate for offal will provide the majority of South Africans with the much-needed affordable protein. The approved items include: “Edible offal of sheep, poultry, goats, swine, and bovine animals; specific cuts such as heads, feet, bones, and tongues; dairy liquid blend; and tinned or canned vegetables.”
AMIE welcomes the inclusion of offal meat in the Zero VAT Rate basket and looks forward to working closely with the government and other industry players to further support objectives and initiatives that directly benefit consumers.
To read the full speech click here
For more commentary you can read this article by Daily Maverick.
Follow the AMIE website for relevant news updates.
