Gemfields, a leading producer of coloured gemstones, has called upon the Zambian government to reconsider a recently re-introduced 15% export tax on emeralds.
The company expressed concerns that this tax could negatively impact the sustainability of the emerald sector in Zambia.
Zambia, the world’s second-largest emerald producer after Colombia, reinstated the export tax on January 1st, after a suspension in 2019.
Gemfields, which operates the Kagem emerald mine in Zambia, one of the world’s largest, emphasized the potential negative consequences of the tax on investment and sector growth.
The company highlighted that it already contributes significantly to the Zambian economy, with Kagem paying an effective 31% of its revenues to the government through mineral royalties, corporation tax, and dividends.
Gemfields owns 75% of Kagem, with the remaining 25% held by the Zambian government.
Since 2009, Kagem has generated $1.1 billion in emerald sales revenue.
This news article reports on Gemfields’ request to the Zambian government to reconsider the recently re-introduced export tax on emeralds, citing potential negative impacts on the sector’s sustainability and investment attractiveness.