Association defends support for suspension of 15% export duty on precious stones

The Emerald and Semi-Precious Stones Mining Association of Zambia (ESMAZ) has denied allegations of corruption surrounding government’s suspension of the 15 percent export duty on precious stones and metals, urging critics to provide evidence of wrongdoing.

ESMAZ President, Victor Kalesha, responded to accusations, notably from Economic Freedom Fighters (EFF) Secretary-General, Changala Siame, who criticized the decision, claiming it was linked to corruption.

In a statement issued on Friday, Kalesha called on police and stakeholders to investigate the allegations, asserting that the decision was well-informed and not a result of corruption.

Kalesha emphasized that the suspension was made after careful consideration of the complexities within the emerald mining sector and the potential consequences of an unfavorable tax regime.

He highlighted the risks faced by small-scale miners, noting that many continue to hold their licenses despite facing significant losses.

“It’s essential to understand that the emerald mining sector is not a guaranteed success story…The suspension of the 15 percent gemstone export tax is not a ‘fluke’ or a result of corruption, as some critics would have you believe,” Kalesha said.

He also pointed out that the export duty was introduced in 2018/2019 by the previous government and suspended after consultations with industry stakeholders.

The tax had applied not only to emeralds but to all gemstones in the Artisanal and Small-Scale Mining (ASM) sector.

Kalesha invited critics to partner with license holders to gain a better understanding of the industry’s dynamics and the rationale behind the tax suspension.

He urged a more informed discussion on the subject, noting that the emerald mining sector demands resilience and deep industry knowledge.

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