Mauritius strengthens economic ties with Italy & US
Mauritius is no longer on the tax blacklist of Italy, having raised transparency and governance standards, while the island economy will increase cooperation with the US in maritime security, environment, ocean economy, and financial services. (Image: JurisTax)
The effort undertaken by Mauritius to raise the standards of transparency and governance in the financial sector is slowly paying off with the country being no longer part of the tax blacklist of Italy following the entry into force of the Italian Stability Law 2015.
Italy has also taken this decision in recognition of the effectiveness of the Mauritius tax exchange information system and another factor is that the provision of information exchange between the two countries in terms of taxes is considered robust and effective in preventing the risk of tax evasion in business transactions.
With this decision, Italy has aligned itself with the Organisation for Economic Cooperation and Development (OECD) which already removed Mauritius from its black list since long and the favourable tax regime shall attract more Italian investors as well as enterprises to invest in Mauritius.
In a statement by the Minister of Finance and Economic Development, Vishnu Lutchmeenaraidoo, he underlined that “the decision of the Italian government bears testimony to Mauritius being a transparent financial centre of good repute.
He further stressed that Mauritius has also taken several measures to strengthen its jurisdiction.
This development will enable Mauritius to consider new opportunities for trade and investment with Italy. Besides, Mauritian exports to Italy may now on benefit from a more favorable tax system, hence making it more competitive, Vishnu Lutchmeenaraidoo added.
Furthermore, Mauritius and the United States will reinforce cooperation in areas of mutual interest and strengthen existing ties between the two countries, as highlighted in discussions during a courtesy call made by US Ambassador to Mauritius Shari Villarosa on Prime Minister Anerood Jugnauth, at the Treasury Building in Port Louis.
The main themes touched upon include the collaboration of both Mauritius and the United States in the fields of maritime security, environment and the ocean economy, financial sector, shelters for abused women, provision of training to the Mauritian Police force, and the development of a Freedom of Information Act.
In a statement, Shari Villarosa expressed the interest of the US government to assist and provide technical and financial support to Mauritius on its development path.
She also evoked some priority areas where, at an initial stage, both countries can work together: namely the promotion of regional security as well as boosting trade and investments and encouraging more Mauritian students to go for further studies to the United States.