Trade policy group faults suspension of 15% export tax on gemstones, seeks fairer returns in favour of govt

Debate over the suspension of the 15 percent export tax on gemstones and precious metals has intensified, with the Centre for Trade Policy and Development (CTPD) urging the government to reinstate the levy.

CTPD Research Associate–Extractives, Stephen Kambani, described demands from gemstone mining companies to scrap the tax as unreasonable.

He argued that removing the duty undermined Zambia’s ability to maximize long-term benefits from its mineral resources and weakens efforts to promote value addition in the mining sector.

“Taxes are the primary source of government revenue, financing essential sectors such as health, education, defense, and infrastructure,” Kambani stated in a press release on Tuesday.

“To justify the suspension of the export tax by claiming Zambia lacks local capacity for value addition is a narrow perspective that severely undermines the country’s ability to maximize its mineral wealth over time. A consistent application of the export tax is key to attracting investment in value addition,” he added.

Kambani stressed that an effective mining tax system should strike a balance between maximizing public benefit and encouraging investment.

“For a mineral-dependent economy like Zambia, where mining is the main source of export revenue, capturing these taxes is a matter of national survival. The way taxes are raised and spent can influence public confidence in government,” he said.

Kambani, however, cautioned that while high tax rates may boost short-term revenue, they risk discouraging future investment, ultimately reducing tax income.

Kambani urged the government to adopt a long-term strategy that ensures sustainable revenue collection from the mining sector while balancing the interests of both investors and the state.

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