The Joint Working Group (JWG) is supposed to regularly considers this treaty and a first round of talks was held in December 2011. This new meeting will deepen the discussions between our two countries and provide an opportunity for Mauritius to share his concerns about threats of revising the Treaty unilaterally by New Delhi.
At the meeting of December 2011, Maurice had listened carefully to Indian fears of financial abuses committed by the Treaty.
Maurice had proposed a complete package that would reassure the Indian government while ensuring that the substance of the treaty and its benefits for both countries are safeguarded. Concrete proposals were made and Maurice hope we can reach a satisfactory arrangement for both countries.
The tax treaty with India has allowed Mauritius to develop its financial services sector and, at the same time, brought to the Great Peninsula investments estimated at $ 55 billion in ten years. What has been helpful to this country for job creation through the development of its businesses.
Mauritian professionals follow with interest and concern on this issue which could lead to an overhaul of the treaty that we would remove our comparative and competitive advantages vis-à-vis other offshore centers like Singapore and Hong Kong. India accounts for about 70% of our offshore services.
For some, it is the fault of Mauritius for becoming dependent on a single market and not having been able to diversify our activities in the offshore while the country has signed more than thirty of tax treaties with many different countries.
The Offshore Centre has developed the same syndrome as the textile and clothing and it is only in recent years we have made a timid step in the South African market.