Zambia Lifts Shock Tax on Emeralds
February 24, 25
(IDEX Online) - The government of Zambia has backed down on the 15 per cent export duty it imposed, without warning, on emerald exports as of 1 January 2025.
The move prompted protests from the industry, led by Gemfields, which operates Kagem, the world's largest emerald mine.
Gemfields responded positively to the lifting of the tax, saying it would "put the industry back on track".
The government said (on 18 February) that it had suspended the tax with immediate effect. It originally introduced the tax in 2019 but suspended it a year later, also in response to protests.
Sean Gilbertson, Gemfields CEO, thanked President Hakainde Hichilema's government and said: "The Zambian emerald sector has delivered phenomenal growth over the last 16 years and is today - by a significant margin -the world's largest emerald exporter.
"The government's collaborative approach and decisive action are clear demonstrations of its intent to deliver growth and jobs for Zambia and this step puts our industry back on track to continue that trajectory."
"This 15 per cent export duty was in addition to a 6 per cent mineral royalty tax, which meant emerald producers facing an effective tax on revenues of 21 per cent (in addition to corporation tax of 30 per cent).
Gemfields noted that Brazil and Colombia, also major emerald producers, impose lesser tax burdens.
The Kagem mine which is 75 per cent owned by Gemfields and 25 per cent by the Zambian government.
Pic courtesy Gemfields.