GANDHI NAGAR, Aug 9 : Mauritius Minister of Financial Services and Good Governance Sommilduth Bholah said that his country has never been a tax haven.
Bholah was here with a delegation on a visit to the Gift City, India’s International Financial Service Centre (IFSC), to promote cooperation between financial centres of Mauritius and India.
“Allow me to clarify, our financial services sector, which has developed over decades, is a trusted jurisdiction with extensive experience and numerous advantages. Contrary to your mention, we are not and have never been a tax haven,” Bholah said replying to a question on perception of the island country in the Indian Ocean being a tax haven.
“We indeed faced compliance issues a few years ago with the OECD (Organisation of Economic Co-operation and Development) and the European Union (EU), leading to our placement on their lists. However, we worked diligently to restore our reputation, achieving this in a record 20-21 months. We are now back in full swing, with many investors continuing to trust and do business in Mauritius,” the minister told PTI in an interview.
“The OECD, which recognizes our economic development, defines a tax haven by four criteria: zero or minimal tax rates, lack of transparency, no information sharing, and no substantial activities.
“Mauritius does not meet any of these criteria. We have substantial business operations, over 184 MOUs for information exchange and a flat 15 per cent corporate tax rate endorsed by the OECD. Given these facts, there is no basis to classify Mauritius as a tax haven,” explained officials of the Mauritian delegation accompanying Bholah.
Bholah said that they are in Gujarat to meet with GIFT IFSC officials to discuss areas of cooperation.
“Our visit to GIFT City allowed us to engage with IFSC officers, discuss areas of cooperation, and plan our joint initiatives to benefit both (Mauritian and Indian) jurisdictions…We view GIFT City not as a competitor but as a collaborator, just as we are in various other sectors with India. We look forward to strengthening our relationship,” he said.
“We recognize the emergence of other international financial centres such as Rwanda in Africa, Dubai, Singapore, and the recently established GIFT City. While competition is intensifying, we emphasize two key aspects. “Firstly, compliance is paramount to us. We are steadfast in ensuring that our jurisdiction remains fully compliant, and significant efforts have been made in this regard. Secondly, we acknowledge the growing competition, with more entities entering the financial sector,” he said.
Bholah pitched for directing Indian investment to Africa through the Mauritius route saying it is a safe route.
“First we need to know, we need to acknowledge if there is a requirement for investment in Africa, the answer is straightforward yes.
“They need billions of USD of investment. Okay, they have a growing population, there is a lot of work to be done in Africa in any sector, be it energy, infrastructure, you just name it. Africa needs investment, and there is a growing population over there.
“Now does Mauritius have a prerequisite, is it a good candidate to drive investment into Africa, of course, yes. We have all the infrastructure and the architecture, financial architecture, banking architecture, in Mauritius. We are well connected to India and Africa.”
Mauritius has signed trade agreements, call it segment market, development market whatever it is, Africa continental free trade agreement, he said.
“So, we are signatory to all these trade agreements that give us access to the market duty-free. So, we have all these advantages and then driving investment into Africa through Mauritius, through this platform, of course, has advantages to anybody who wants to go there as opposed to if they go directly,” he said.
Bholah said that India and Mauritius have a long standing relationship. “India is helping Mauritius financially in a lot of sectors. India has been helping through grants or soft loans about the Infrastructural Development Scheme, Mauritius.
“India has been very instrumental in setting up the Metro line in Mauritius. And then into, as I said, in the health sector, the road network; so many projects where India is present for quite some time now,” he said.
During the COVID-19 pandemic, India stepped up to provide Mauritius with substantial support, including vaccines, initial doses, and other essential services, he said. “One statement that captures the relationship between India and Mauritius is from Prime Minister Narendra Modi, who describes it as a “super special relationship.”
This is evident in the numerous projects in Mauritius that have received assistance and support from the Indian government, including in defence, such as the provision of helicopters,” the minister said in reply to a question on how has the relationship improved under Prime Minister Modi. (PTI)
Follow our WhatsApp channel
