Zambia re-introduces 15% export duty on emeralds
The government of Zambia has re-introduced a 15% export duty on all emeralds effective 1 January 2025.
The move revokes a suspension that had been in place since 2020 and directly impacts the world’s largest emerald producer Kagem Mining Limited.
Kagem is 75% owned by Gemfields and 25% owned by Zambia’s Industrial Development Corporation.
The duty, alongside Zambia’s 6% mineral royalty and 30% corporate tax, now imposes an effective tax rate of 21% on Kagem’s revenues.
In comparison, competitors like Brazil and Colombia apply much lower taxes, with Brazil’s tax set at 2% and Colombia’s at 2.5%.
Gemfields stated that it did not receive prior consultation on the new duty, and expressed concern about its impact on Zambia’s emerald sector, which had successfully lobbied to suspend the duty in 2019.
The company plans to engage with the Zambian government to seek its removal or suspension.