Zambia has enacted new legislation to reinstate a 15% export tax on gemstones, effective from January 1, 2025, through the issuance of Statutory Instrument No. 88 of 2024 on the Revocation of Customs and Excise (Precious Stones) (Export Duty) Regulations, directly impacting the country's emerald trade.

        Gemfields, which holds a 75% stake in Kagem Mining Limited, the world's largest emerald mine, is directly affected by this policy, with the Zambian government holding the remaining 25% through the Industrial Development Corporation. 

Rough Emerald from: https://www.professionaljeweller.com/zambia-15-export-duty-on-emeralds/

        This new export tax rate, combined with the existing 6% royalty, means Kagem must pay up to 21% in taxes on gross revenue (excluding the 30% corporate tax). In comparison with other major emerald-exporting countries:

        Brazil collects only 2% revenue tax in the form of royalties

        Colombia collects a total tax of 2.5%, consisting of 1.5% royalty and 1% contribution to the National Emerald Fund

        In 2023, before the export tax implementation, Kagem paid 31% of its revenue to the Zambian government in the form of royalties, corporate tax, and dividends.

        Going back to early 2019, the previous government had initially introduced this 15% export tax but later suspended it in late 2019, effective from January 1, 2020. However, the current reinstatement of the tax was implemented without prior notice or consultation with the industry.

        The Zambian government has introduced additional measures across various economic sectors to increase national revenue in 2025. Gemfields is currently in negotiations with the government to request an exemption or abolition of the export tax, considering its impact on industry sustainability and investment attractiveness.

        Considering production volume, Zambia is the world's third-largest emerald producer after Brazil and Colombia. The implementation of this export tax will likely reduce Zambian emeralds' competitiveness in the global market, and if prices increase due to tax-related costs, consumers may increasingly turn to emeralds from alternative sources.

Written by Mr. Budhiphorn Vichaidist

The Gem and Jewelry Institute of Thailand (Public Organization)

March 2025