You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App
Join our mailing list to receive top business news every weekday morning.

Zambia suspends 15% export duty on gemstones – minister

The government move does not lift duty on diamonds.
Lusaka, Zambia. Image: Shutterstock

Zambia will suspend a 15% export duty on gemstones but not diamonds from January 1 after the move that was intended to raise more revenues instead undermined production, the finance minister said on Thursday.

Bwalya Ng’andu told Reuters the suspension of the export duty, announced in the official gazette on Friday, was a concession to miners after the upfront tax had hurt output.

“The industry was bleeding and production was falling,” he said by telephone.

The export duty still applies to diamonds.

South African gemstone miner Gemfields Group, which had seen its profits hit by the duty, welcomed the suspension of the duty, which had been one issue in a broader row with the mining industry about tax rates.

Africa’s second-largest copper producer has tried to levy higher taxes on the miners, a key part of its economy, as it grapples with high levels of debt and low growth.

Push back from the industry has already forced it to roll back plans to replace its value-added tax with a non-refundable sales tax, another point of contention between miners and the state. 

Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.

COMMENTS   1

You must be signed in to comment.

SIGN IN SIGN UP

Like a moth to a flame.

They just cant stay away from trying to overtax the mining industry. They have been at it for decades now.

If it is not a drought they have to “Grapple” with it is their Governments “disingenuous” policies regarding mining tax.

Zimbabwe “Grapples” with drought and then their Governments “disingenuous” policies regarding their currency.

Shame man. Nature is very cruel. Poor moth.

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: