Diamond Miners Oppose New VAT Rules in Lesotho
June 15, 22
(IDEX Online) - Diamond miners in Lesotho are urging the government to reconsider new rules that would halt refunds on VAT paid on the goods, services and capital items for day-to-day operations.
They say the proposed VAT Amendment Bill would harm the industry, which produced 1.1m carats in 2019.
Australian-owned Lucapa, which operates Mothae, the world's highest US$ per carat kimberlite diamond mine, say it has made representations with other miners to the kingdom's mining ministry.
It has interests elsewhere - Angola, Botswana and Australia - but says Mothae (in which it has a 70 per cent stake) accounts for over a fifth of its revenue.
In a statement it said the new VAT rules would "impact" all diamond miners in Lesotho. The bill is currently paused, pending further review and interaction with key stakeholders.
Pic shows a 204-carat diamond recovered last month at Mothae.