Africa now accounts for over 50 per cent of the total number of investments made through Mauritius, while India's share has fallen to just about 15 per cent.
Negotiations to amend the India-Mauritius tax treaty have been hanging fire for many months amid India's apprehensions that the pact is being misused to route unaccounted money and evade taxes.
While Mauritius says it has strict checks and balances in place, uncertainties over the tax treaty have adversely affected investment flows between the two nations.
According to figures compiled by the island nation's Financial Services Commission (FSC), the share in the number of investments made by global business companies into India slumped to 15.87 per cent in 2012.
In 2010, India's share was as high as 32.27 per cent, before declining to 23.25 per cent in 2011.
The FSC is the integrated regulator for all non-banking financial services and global business sectors in Mauritius.
The numbers pertain to Global Business Companies (GBCs), entities that are licensed to operate in Mauritius by the FSC.
In comparison to India's share, Africa attracted 50.95 per cent of total number of investments made by GBCs in 2012. This marks a substantial increase from Africa's share of 30.68 per cent in 2010 and 40.12 per cent in 2011.
"A few years back, Mauritius was largely dependent on the Indian market but the African strategy adopted showed positive results," FSC said in its latest annual report for 2012.
"A large part of investment is now directed towards Africa, thus reducing the dependence on India. Such a result reveals not only the market is now diversifying but also that investment has increased," it added.
However, the regulator stressed that India remains an important partner for Mauritius and it has closely followed policy developments such as the Indian General Anti-Avoidance Rule ( GAAR) and the Direct Tax Code.
In September, FSC Chief Executive Clairette Ah-Hen had said that some new investors are not exploring investment opportunities offered by Mauritius as a gateway to India due to tax pact-related concerns.
"Because of this uncertainty, both India side and Mauritius side are losing, as we could have otherwise got the momentum. The funds would have been flowing (into India).
"But now you have a situation where investors wait and watch. So they will look for alternatives...That is where time is important (for revising the pact)," Ah-Hen had said in an interview.
« La révision du traité de non-double imposition entre l’Inde et Maurice donne de la crédibilité au centre financier mauricien au regard des investisseurs », a déclaré Roshi Bhadain, ministre des Services financiers.
6 years ago
Le ministre des Finances Vishnu Lutchmeenaraidoo ne compte pas se laisser faire. Face aux bureaucrates indiens qui sont à Maurice pour renégocier le traité fiscal entre Maurice et l’Inde, il persiste et signe. Il n’est pas question, dit-il, d’accepter des amendements qui ne serviront pas l’intérêt de l’industrie offshore à Maurice.
6 years, 4 months ago
Indian Finance minister P Chidambaram has said the government has not made any progress in renegotiating a contentious tax treaty with Mauritius and that the tax-related travails of MNCs such as Vodafone, Nokia or Shell made more news in India than abroad.
9 years, 2 months ago
NEW DELHI: End of Mauritius' tax treaty with India could have a high impact on the island nation, a staff study of the International Monetary Fund (IMF) has warned, explaining the country's reluctance to renegotiate the lucrative treaty it has with New Delhi.
9 years, 2 months ago
Le vice-Premier ministre et ministre des Finances Xavier-Luc Duval se félicite de la démarche de son homologue indien au sujet de l’importance du Tax Residency Certificate dans le cadre du Double Taxation Avoidance Treaty (DTAT).
9 years, 3 months ago