Zimbabwe Lithium Producers Request 2026 Tax Moratorium to Support Local Processing Investments
Zimbabwean lithium mining companies have asked the government to postpone the imposition of a tax on lithium concentrates until the end of 2026, arguing that the extension would allow them sufficient time to secure funding for the construction of local processing plants.
The country currently levies a 5% value-added tax (VAT) on lithium concentrates that have not been beneficiated to the required standard.
Faced with depressed global lithium prices, miners submitted a position paper reviewed by Bloomberg News and confirmed by the Zimbabwe Chamber of Mines seeking a temporary tax moratorium so they can raise capital for processing infrastructure.
In June, the government announced plans to ban exports of lithium concentrates starting in 2027 to compel mining companies to build in-country processing facilities.
Zimbabwe has become an important supplier of lithium concentrate to Chinese refineries following major investments by companies such as Chengxin Lithium Group and Zhejiang Huayou Cobalt.
According to government officials, Bikita Minerals, owned by Sinomine Resources Group, and Arcadia Lithium are already constructing plants that will convert ore into higher-value lithium sulphate.
Finance Secretary George Guvamatanga, however, said the Treasury will not reverse its position, noting that Parliament has instructed the government not to introduce any further delays to the tax requirement.
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