The Zambian government has reinstated a 15% export duty on emeralds, effective 1 January 2025, following a suspension that had been in place since 2020.
The 15% export duty was initially introduced in 2019 but was suspended later that year after lobbying by the Zambian emerald sector. The suspension remained in place until its recent revocation. Gemfields stated that the duty was reintroduced without prior notice or consultation.
Industry Implications
The new export duty aligns with Zambia’s efforts to increase government revenue in 2025, with reports of similar measures in other sectors. This may influence the gemstone sector’s operating conditions and its appeal to investors.
With the reintroduction of the export duty, emerald producer Kagem’s effective tax rate on revenues increases to 21%, in addition to the standard 30% corporate tax. This compares to aggregate revenue taxes of 2% in Brazil and 2.5% in Colombia, excluding corporate taxes.
Kagem Mining Limited, owned 75% by Gemfields and 25% by the Zambian Government’s Industrial Development Corporation, paid 31% of its revenues to the Zambian government in 2023 when the duty was suspended. The new duty will increase government revenues from the sector but may affect the mine’s profitability and Zambia’s competitive position in the global emerald market.
