By 
Gemfields, the majority owner of Kagem Mining Limited, has criticized the Zambian government’s decision to reintroduce a 15 percent export duty on emeralds, effective January 1, 2025, citing the absence of prior notice or consultation.
The export duty was reinstated through Statutory Instrument No. 88 of 2024, issued on December 30, 2024, which revoked the suspension of the duty that had been in place since 2019.
In a statement issued Wednesday, Gemfields expressed concern over the sustainability of Zambia’s emerald sector and its attractiveness to investors under the revised tax regime.
The firm noted that the reintroduction of the export duty brings Kagem’s effective tax on revenues to 21 percent, considering the existing six percent mineral royalty tax, in addition to the 30 percent corporate tax.
Gemfields highlighted that Zambia’s tax burden now significantly exceeds those of other major emerald-exporting countries.
Brazil and Colombia, for instance, impose aggregate taxes of two percent and 2.5 percent on revenues, respectively, alongside corporate tax rates of 34 percent and 33 percent, the company claimed.
“In 2023, when no export duty was in place, Kagem contributed 31 percent of its revenues to the Zambian government through mineral royalties, corporate taxes, and dividends,” the firm stated.
The 15 percent export duty was first introduced in 2019 but suspended later that year following pushback from industry players.
Its reintroduction has raised concerns about the competitiveness of Zambia’s emerald sector on the global stage.
Gemfields has committed to engaging the government to advocate for the suspension or removal of the export duty, emphasizing the potential adverse effects on investment and sector sustainability.
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