Home ECONOMY Zambia Suspends 15% Export Duty on Gemstones

Zambia Suspends 15% Export Duty on Gemstones

by biasharadigest

Zambia has announced that it will suspend its 15% export duty on gemstones, with effect from 1st January 2020.

Initially, the government had introduced the export duty, alongside a 6% mineral tax, with the hope of raising more revenue. However, it only served to undermine the production of gemstones.

Precious-stones producer, Gemfields, said that in its six months to end-June the export duty hampered its cash flow at Kagem to the tune of $5 million.

With the export duty and mineral tax in place, Kagem was paying 21% of its revenues to tax authorities.

However, the export duty still applies to diamonds.

The Kagem emerald mine is the world’s single largest producer of emeralds and accounts for approximately 25% of global emerald production.

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