In an effort to boost domestic revenue generation for 2025, the Zambian government has reinstated a 15% export duty on precious gemstones. This move reverses the suspension enacted in 2019, following the issuance of Statutory Instrument No. 88 of 2024, the Customs and Excise (Precious Stones) (Export Duty) (Suspension) (Revocation) Order, 2024. The new policy took effect on January 1, 2025.
Gemfields, a major player in Zambia’s emerald mining sector, which owns 75% of Kagem Mining Limited in partnership with the Zambian government’s Industrial Development Corporation (25%), has expressed concern over the change. The company states that the reintroduced export duty increases its effective tax burden on revenues to 21%, in addition to the existing 30% corporation tax.
According to Gemfields, Kagem Mining paid an effective 31% of its revenues to the Zambian government in 2023, when no export duty was in place. This included mineral royalties, corporation tax, and dividends.
The export duty was initially introduced in 2019 by the Patriotic Front government. However, it was suspended later that year, ceasing to apply from January 1, 2020, following significant lobbying by the Zambian emerald sector.
In a statement issued through Langmead and Baker Limited, Gemfields noted that the reintroduction of the duty was implemented without prior notice or consultation. The company highlighted that other measures aimed at increasing government revenue have also been introduced in various sectors of the economy for 2025.
Gemfields plans to engage with the Zambian government to advocate for the reinstatement of the duty suspension or its removal, citing concerns over the impact on the sector’s sustainability and investment appeal.
“The 15% export duty now applies in addition to the existing 6% mineral royalty tax, resulting in Kagem facing an effective tax rate of 21% on revenues, not including the 30% corporation tax,” the company stated.
Gemfields also compared Zambia’s tax regime with those of other major emerald-exporting nations. Brazil imposes an aggregate revenue tax of 2% (mineral royalty), while Colombia’s aggregate tax is 2.5%, comprising a 1.5% mineral royalty and a 1% contribution to the national emerald fund. Both countries also have corporate tax rates of 34% and 33%, respectively.
Zambia, Brazil, and Colombia are recognized as the world’s leading emerald exporters.
LATE Chief Kambwali of the Lunda people on his Royal seat, traditionally known as ITEBE, during his funeral procession in Nchelenge district today. According to the Lunda custom, a passed on, Mwata is displayed to the public while seated on the ITEBE ahead of burial.
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