By 
Mines and Mineral Development Minister, Paul Kabuswe, has officially announced that government is reviewing the reintroduced 15 percent duty on emeralds and precious stones following backlash from stakeholders.
Industry players had raised concerns about its potential negative impact on the industry’s sustainability.
The export duty, which came into effect on January 1, 2025, was reinstated through Statutory Instrument No. 88 of 2024, issued on December 30, 2024, reversing a suspension that had been in place since 2019.
According to Kabuswe, Government had taken into consideration the complaints that stakeholders had put forward.
He made this announcement at a media briefing in Lusaka on Thursday held at the Ministry.
Read more: Gemfields decries reinstatement of 15% export duty on emeralds, laments lack of consultation
“We are a listening government. We are studying the concerns that have been raised by stakeholders. We will meet them and do something about it,” Kabuswe said.
He pointed out that government would listen to stakeholders.
Recently at the Future Minerals Forum 2025 in Riyadh, Saudi Arabia, Jito Kayumba, Special Assistant to the President on Finance and Investments, hinted that the government was likely to suspend the 15 percent export duty.
“Zambia is likely to suspend a decision to reintroduce a 15 percent tax on exports of precious gemstones, including emeralds,” Mr Kayumba stated.
Gemfields, the majority owner of Kagem Mining Limited, criticised the reintroduction of the export duty, citing the absence of prior consultation and warning of its potential to harm the country’s emerald sector and deter investors.
The company noted that the export duty, combined with the existing six percent mineral royalty tax and 30 percent corporate tax, increased Kagem’s effective tax on revenues to 21 percent.
Similar concerns were raised by the Federation of Small-Scale Mining Associations of Zambia (FSSMAZ).
FSSMAZ president Joseph Mwansa highlighted that investors would be deterred, and that the country risked being labelled Africa’s most taxed nation.
This move, Mwansa explained, would not only negatively impact small-scale miners, but will lead to reduced production and potential job losses.
“The lack of consultation and research on the impact of this tax hike is concerning. A thorough analysis of international best practices and the effects on local businesses was needed.
“As a result, buyers and investors will be discouraged from investing, and traders will struggle to sell. This will ultimately lead to miners increasing prices, making their products uncompetitive on the global market,” Mwansa said.
WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.
Comments