Ex-Kasenengwa lawmaker, Banda, disagrees with govt’s decision to suspend 15% export duty on emeralds

Former Kasenengwa lawmaker, Sensio Banda, has criticised government’s decision to suspend the 15 percent export duty on precious stones and metals, warning that it could undermine domestic revenue mobilization efforts.

Finance Minister, Dr. Situmbeko Musokotwane, recently issued Statutory Instrument No. 4 of 2025, suspending the tax to boost Zambia’s export earnings.

However, Banda told Zambia Monitor in an interview that the move may not deliver the promised benefits in terms of foreign exchange earnings or investor confidence.

“There is more to this decision than meets the eye, and it may not be in the best interest of the country,” Banda said.

He argued that the policy raises concerns about its alignment with Zambia’s long-term fiscal and economic goals, especially as the government aims to mobilize 80 percent of its 2025 budget domestically.

“This plan assumes diversification of the mining sector, including increased production of precious metals and stones, and stronger tax revenue from initiatives like the Zambia Gold Company (ZGC),” he noted.

Read More: Govt heeds public appeal, suspends 15% export duty on precious stones amid Gemfields’ halt on emerald sales

Banda called for policy reforms to improve tax collection, including stricter enforcement of royalty payments and measures to curb tax evasion.

“Given that 80 percent of Zambia’s 2025 budget is expected to be financed domestically, why reduce the tax revenue base? Who truly benefits from zero-rating the export duty?” he asked.

He emphasized that Zambia’s key precious resources, emeralds and gold, are vital to the economy, with gold exports alone contributing around $1.5 billion in 2022.

According to Banda, the main beneficiaries of the tax cut are private firms such as JCM Matomo Mining, African Green Resources (AGR), ZCCM-IH Kasenseli Gold Mine, Dunrobin Gold Mine, and Matala Mining. Others include Lumwana Mining Company, Kansanshi Mining PLC, Zambia Gold Company (ZGC), and emerald giants like Gemfields (Kagem) and Grizzly Mining—rather than ordinary Zambians.

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