Lithium producers clash with government over 5% beneficiation tax

Local lithium producers are locked in a dispute with the Zimbabwe Revenue Authority (ZIMRA) over the enforcement of a 5% beneficiation tax on lithium concentrates.

Producers argue that the levy is being prematurely applied despite a prior government agreement to defer its collection until January 2027, when domestic processing plants are expected to be operational.

The Chamber of Mines, with support from the Minister of Mines, is engaging the Ministry of Finance to resolve the issue, warning that early enforcement undermines investment in local beneficiation projects.

Meanwhile, royalty computation on lithium exports also remains under review, with stakeholders pushing for amendments to ensure fair taxation.

The matter has been referred to a technical team for resolution ahead of the 2025 Mid-Term Budget Review.

This clash underscores the delicate balance between revenue collection and nurturing Zimbabwe’s growing lithium value-addition industry.

Zim Economic Review