NERPO SUPPORTS MINISTER’S MOVE TO ZERO-RATE POULTRY MEAT PRODUCTS
02 Jun 2008
The Group Managing Director of NERPO, Mr Aggrey Mahanjana has expressed his delight over the decision by the Minister of Agriculture and Land Affairs Ms Lulu Xingwana, to remove (zero-rate) Value Added Tax (VAT) from sorghum products, baby foods and chicken. “In view of the escalating food prices and sympathising with the consumer’s cash flow crisis, I am immensely pleased to have learnt of this decision as it showcases government’s commitment to offer practical solutions to the country’s economic plight, more especially if the removal will be stretched over to other meat products” Mahanjana argued.
NERPO has however encouraged the Minister to relook at her decision in view of the fact that if it is only implemented on one segment of the meat industry, it will not have the significant impact in alleviating the burden of rocketing food and meat prices. If not reviewed, the decision could also be challenged by other meat industry players for its failure to recognise the basic principles of competition. “As Red Meat Industry, we have made a plea to the Minister, to also consider zero-rating of the red meat products so as to also give a consumer a fair opportunity to buy meat products of their choice” added Mahanjana.
Negotiations between the Red Meat and Poultry industry role players are underway to consolidate a submission to the Minister asking her to embellish her decision. The submission will be presented to the Minister before the end of July 2008.
NERPO is a mouthpiece of South Africa’s emerging livestock farmers and in the main sought to commercialise over 48 000 of its members as well as the country’s black and emerging livestock farming community while ensuring their meaningful participation in the value adding chain of the red meat industry.
Enquiries
Aggrey Mahanjana
Group Managing Director
Tel : +27 12 361 9127
Cell : +27 82 556 7297
E-mail : aggreym@nerpo.org.za
Website : www.nerpo.org.za
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