Policy centre warns mining tax exemptions could erode Zambia’s revenue base

The Centre for Trade Policy and Development (CTPD) has warned that recent tax concessions in the mining sector threaten Zambia’s ability to mobilise domestic revenue, especially amid rising debt and fiscal pressures.

In January 2025, the government issued Statutory Instrument (SI) No. 4, suspending export taxes on gold, silver, gemstones, and other precious minerals, citing low local absorption capacity and competitiveness challenges for local firms.

More recently, in June 2025, SI No. 47 granted selected companies the right to export copper concentrates without paying export taxes.

CTPD Research Associate for Extractives, Stephen Kambani, said these shifts raised critical questions about whether Zambia was safeguarding its long-term national interest.

“These intermittent policy shifts largely serve the interests of multinational mining companies at the expense of Zambia’s long-term development goals,” Kambani said.

“At a time when the nation is grappling with rising debt and pressing fiscal obligations, such concessions undermine Zambia’s ability to mobilise domestic resources.”

Kambani described the indefinite suspension of gemstone export taxes as “deeply concerning,” noting that despite being a top global supplier of emeralds, Zambia continues to miss out on opportunities for domestic value addition.

On copper, he said the June–October suspension of export taxes on concentrates could lead to significant treasury losses, with projected exports of more than 255,000 metric tonnes.

“This is especially troubling because Zambia already has over three million metric tonnes of smelting capacity, making the justification for the exemption unclear,” he added.

CTPD urged government to resist pressure from multinational mining firms and adopt policies requiring a minimum level of local value addition before raw minerals are exported. It further called for stronger promotion of local content and beneficiation as part of Zambia’s industrialisation strategy.

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