WHY HAS GOVERNMENT SUSPENDED EXPORT DUTY ON GEMSTONES AND PRECIOUS STONES?
By Alexander Nkosi
Export duty on gemstones and precious stones was suspended in 2019. Last year Government decided to rescind this decision by re-introducing it as part of enhanced domestic revenue mobilisation. When this decision to lift the suspension was made, the assumption was that load shedding would significantly reduce in 2025 and small and medium scale mining firms will be operating at full capacity. Note that since pro-longed load shedding was introduced in 2024, only big mines get the full electricity and small and medium scale mines.
Come January 2025, export duty on gemstones and precious stones kicked in but load shedding persisted and the update shared by experts was that the situation won’t improve much throughout 2025. A tax is a cost to business and if most of the small and medium scale mines are not producing at full capacity due to load shedding and taxes go up, a lot of them will either cut down on production or close down. This will result into revenue from mineral royalty tax going down.
In short, we won’t necessarily collect more revenue. This is what has compelled Government to defer lifting the suspension of export duty on gemstones and precious stones to a later date when the power issue has improved. Government still remains committed to expanding domestic revenue.
Note that I am in full support of all those calling for Zambia to get more from its natural resources like minerals. The idea is that tax revenue from the mines should essentially help build other industries like agriculture, manufacturing, tourism, infrastructure and energy. However, load shedding has had a very huge negative impact on the private sector and small and medium scale mines have not been spared.
Thank you.
The country is not benefitting from the smuggling of our precious minerals.
Captain Ibrahim Traore informs his nation on how much his country makes on selling minerals, and how that money is spent. The man has cleared all national debt, and do not accept donations from external entities. In less than 2 years, his country is self reliant. Investors are tripping over themselves to invest in his country, yet the Captain never makes any foreign trips. The man does not even have offshore accounts to hide dirty money. He welcomes critism openly, and makes adjustments so that he governs better. No imingalato.
How I wish other African presidents could follow his lead. We are stuck with greedy conmen instead.
Reject tribalism, corruption and oppression.
Vote like they do in Southern province.
Vote wisely in 2026.