To enhance domestic revenue mobilisation in 2025, Government has re-introduced a 15 percent export duty on precious gemstones.
This follows the revocation of 2019 suspension of a 15 percent export duty on precious gemstones new statutory instrument dated December 30, 2024 (a (S.I. No. 88 of 2024, the Customs and Excise (Precious Stones) (Export Duty) (Suspension) (Revocation) Order, 2024)) and came into effect on January 1, 2025.
And Gemfields, which owns 75 percent of the Zambian emeralds mined by Kagem Mining Limited and 25 percent by the Zambian Government’s Industrial Development Corporation, says it faces an effective tax on revenues of 21 percent (in addition to corporation tax of 30 percent).
Gemfields says in 2023 when no export duty was in place, Kagem paid an effective 31 percent of its revenues to the Government of Zambia in the form of mineral royalty, corporation tax and dividends.
The 15 percent export duty was originally introduced at the start of 2019 by the Patriotic Front government.
After considerable lobbying by the Zambian emerald sector, the export duty was suspended at the end of 2019 and ceased to apply from January 1, 2020.
“Gemfields notes that there was no notice or prior consultation regarding the re-introduction of the 15 percent export duty. Gemfields understands that several additional measures have also been introduced in other areas of the Zambian economy to enhance Zambian Government revenues in 2025,” the company said in a statement by Langmead and Baker Limited.
The company intends to engage with the Zambian government to seek the re-introduction of the suspension of this export duty or to remove it from the legislation given the impact on sector sustainability and investment attractiveness.
“The company will keep the market informed of further developments. This 15 percent export duty now applies on top of the existing six percent mineral royalty tax and meaning that Kagem faces an effective tax on revenues of 21 percent (in addition to corporation tax of 30 percent),” the company states.
Gemfields says Brazil, Colombia and Zambia are the world’s three largest emerald exporters.
Brazil’s aggregate tax on revenues is two percent (in the form of mineral royalty) and Colombia’s aggregate tax on revenues is 2.5 percent (being a 1.5 percent mineral royalty and a one percent national emerald fund contribution) in addition to corporation taxes of 34 percent and 33 percent respectively.
By Benedict Tembo
Is it only on Precious Gems ??
NAPSA has put up the threshold presumably caused by their dual carriage way commitment ??
NHI also recording a big loss which was predicted before it was put into law
ZRA also behind target
Some seem to think we are on the right track ??
You can never be on the right track with crippling blackouts. And you can’t tax your way to prosperity.
Yes because of the crippling drought even mobile money must be taxed.