In a development that could help check money laundering activities from Mauritius, its Indian-origin Prime Minister Navin Ramgoolam on Tuesday assured Prime Minister Narendra Modi that the island nation has decided to provide automatic exchange of tax related information with India.
Earlier, in his first bilateral meeting with international leaders after assuming charge, Modi held talks with Afghanistan President Hamid Karzai. He also held talks with Sri lankan President Mahinda Rajapaksa, Bhutan Prime Minister Tshering Tobgay, Nepal Prime Minister Sushil Koirala and Maldivian President Abdulla Yameen Abdul Gayoom.
Plight of Tamil fishermen figured prominently in the talks between Modi and Rajapaksa and both the countries agreed to address the issue in the right earnest. It is a contentious issue in Tamil Nadu with the ruling AIADMK and its rival DMK repeatedly protesting against the arrest of Tamil fishermen by Sri lankan forces.
Speaking to reporters after holding talks with Modi, Mauritius Prime Minister Ramgoolam said his country has decided to provide automatic exchange of tax related information with India. He also said Mauritius will not allow anybody to abuse or misuse its jurisdiction for any illicit activities.
On the contentious issue of revision of a tax treaty between two countries, the Mauritius Prime Minister said, “there must be a quick resolution to resolve all issues related to the direct tax avoidance agreement between the two countries. We both agreed that there must be quick resolution (on the issues) for certainty, clarity and predictability.”
A proposed revision of the tax treaty has been hanging in the balance for a long time and there have been reports that Mauritius was not agreeable to certain suggestions made by India, which has been seeking to make the agreement stronger to check any possible round tripping of Indian funds through the Indian Ocean island nation.
Ramgoolam said Mauritius has made new proposals that allay the concerns of India with respect to the tax treaty.
Meanwhile, India and Mauritius have decided to have an innovative partnership to strengthen their bilateral relations. In this regard, the Prime Minister’s Office of both countries would set up special cells for effective implementation of ideas, Ramgoolam said.
In his talks with Karzai, Modi discussed ways to enhance cooperation in key areas and the recent attack on Indian Consulate in Herat that the Afghan leader maintains was carried out by lashkar-e-Tayyeba. The Indian Prime Minister also thanked Karzai for the assistance provided by the Afghan forces in repelling the attack on the Consulate.
Modi reiterated India’s commitment to the development and reconstruction of Afghanistan and its interest in seeing a prosperous, independent and sovereign Afghanistan, where the reconciliation process would be Afghan-led, Afghan-owned and Afghan-controlled, said Foreign Secretary Sujatha Singh.
Asked about Karzai’s remarks on Monday that terrorist group leT was behind the attack on the Indian Consulate and if same was raised in the meeting, Singh parried a detailed answer and merely said, “Yes. There was a discussion (on terror attack)” and the views of Afghan President were in the public domain.
Karzai had said, “According to information given to us by a Western intelligence agency, the perpetrators of the Herat attack belonged to the leT. This was mentioned in writing in the report shared with us....”
Asked about Indian view in the wake of withdrawal of NATO combat troops, Singh said, “We are deeply involved.... Including training Afghan national security forces and we expect the cooperation to increase in coming days” but asserted that Afghan forces will be able to protect the country and others there the way they have done during the recent Herat attack.