Lucapa Diamond Company warned that the proposed VAT Amendment Bill under consideration in the Kingdom of Lesotho, if enacted, will impact the diamond mining industry in Lesotho including Lucapa’s investment in the Mothae Diamond Mine which contributed ~21% to Lucapa’s attributable mining EBITDA in FY2021.
“The VAT Amendment Bill, should it be enacted in its current form, will result in the diamond industry in Lesotho no longer being able to claim back and be refunded their Input VAT currently paid on the goods, services and capital items procured for day-to-day operations,” the company said in a statement.
Lucapa, together with fellow miners and members of the Chamber of Mines and other key stakeholders, have made presentations to and constructively engaged with the relevant authorities on the impact the passing of the VAT Amendment Bill could have on the Lesotho diamond industry.
The Chamber of Mines has been advised by the Ministry of Mining that the VAT Amendment Bill process has been paused pending further review and interaction with key stakeholders. Lucapa Diamond will update on the outcome in due course.
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