Zambia to stop export duty on precious gemstones, Gemfields says

The 15% tariff, together with a 6% mineral tax, has badly affected the company’s cash flow.

Precious-stones producer Gemfields says Zambia has suspended a 15% duty on the export of precious gemstones.The Fabergé owner’s two main operating assets are MRM and the Kagem Emerald Mine in Zambia, in which it holds 75% of each.

The company had said that in its six months to end-June the export duty hampered its cash flow at Kagem to the tune of $5m.Zambia had implemented a 15% export duty earlier in 2019, which along with a 6% mineral tax meant Kagem was paying 21% of its revenues to tax authorities.

The duty will be suspended with effect from January 1.

Zambia, Africa's second-largest copper producer, has tried to levy higher taxes on the mining industry — a key sector — as it grapples with high levels of debt and low growth, Reuters reported

However, pushback by the industry has forced it to roll back plans to replace its value-added tax with a nonrefundable sales tax, a big bone of contention in the industry.