"The stock market's reaction to Finance Minister P Chidambaram's budget speech and the reaction of the investors has nothing to do with Mauritius. Instead, the locals feel offended if Mauritius has been termed as a tax haven," he told reporters in an informal interaction in Port Louis.
On the day of the Union Budget on February 28, Indian stocks had fallen sharply after Chidambaram said that Tax Residency Certificate is ‘a necessary but not Sufficient’ condition to avail of the benefits under double taxation avoidance agreements.
Mauritius is one of the major countries that issues TRC for foreign investors looking to invest in India with tax benefits arising from Indo-Mauritian tax treaty.
Later, Finance Ministry clarified that no fresh changes has been proposed in the budget with regard to Mauritius and those investing through the island nation.
The High Commissioner said the taxes are actually low in the country making it one of the favourite destinations for people who want to set up business in Mauritius.
Seetharam, however, refused to comment on the role of alleged Mauritius based fictitious companies instrumental in alleged channelising of illegal funds and re-routing
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