Sierra Leone has imposed a new 15% tax on exports of high value diamonds, a government official said yesterday, Reuters reported.



The West African country, which is attempting to reverse years of economically debilitating mismanagement and corruption after a 1991-2002 civil war, charged as of December 28 an export tax of 15% of the value of stones worth more than $500,000, the report said.



"The new tax of 15% is a windfall," said Abdul Ignosse Koroma, deputy minister of mineral resources. "Diamonds exported under the former 6.5% (tax) were not in the interest of the country."



Diamonds, many of which are dug in dangerous conditions by amateur miners, are the poor country's main source of foreign currency, the report said.



A mining act passed last November raised taxes on diamonds to 6.5% from a previous 5%, and on gold and other precious metals to 5% from 4%.

The former British colony aims to attract investors as it tries to rebuild its economy. As well as diamonds and titanium ore rutile, Sierra Leone has the potential to be a source of gold and iron ore.



Traders said the 15% levy on high value diamonds may prove counterproductive, the Reuters report said.



"This new tax may lead to an increase in diamond smuggling, which has been brought under control since the Kimberley Process was established," said one diamond dealer in Freetown, speaking on condition of anonymity.



The process is a certification scheme set up in 2003 in the aftermath of civil wars in Sierra Leone, Liberia and Angola, which were largely financed by the diamond trade.

The most recent official Sierra Leonean export figures valued shipments of diamonds at $36 million in the first six months of 2009, down from around $50 million in the same period of 2008.