15% export tax on Gemstones dropped in Zambia


Cecilia Jamasmie | December 19, 2019 | 9:49 am Markets Africa  Diamond  

Kagem mine is the world’s single largest producer of emeralds, accounting for about 25% of global production. (Image courtesy of Global Business Reports | Twitter.)

Zambia will suspend a 15% export tax on gemstones, excluding diamonds, from Jan. 1 next year as the levy, aimed at raising more revenues ended up affecting the country’s output.

The news was welcomed by Gemfields (JSE: GML), which runs Kagem, the world’s largest emerald mine, located in the Copperbelt province of Zambia.

Mining accounts for more than 70% of Zambia’s foreign exchange earnings 

The company has had to pay 21% in taxes for its shipments from the African country this year, as its gemstones were also subject to a long-standing 6% mineral royalty.

That compares with only 2.5% and 2% producers pay in large-emerald exporting countries Colombia and Brazil, respectively, Gemfields said.

The duty hit small-scale gemstones miners the hardest, as they were unable to attract significant investment this year. Mining accounts for more than 70% of the southern African nation’s foreign exchange earnings. 

Gemfields is also the operator and 75% owner of the Montepuez ruby mine, which is located in Mozambique. It also holds controlling interests in various other gemstone mining and prospecting licences in Zambia, Mozambique, Ethiopia and Madagascar

Source: https://www.mining.com/zambia-drops-15-export-tax-on-gemstones/

Disclaimer: This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.


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