Mauritius, RI to sign tax ready

JAKARTA (JP): The Indonesian and Mauritius governments are to sign an agreement to avoid double taxation, said Indonesia's Minister of Tourism, Post and Telecommunications Joop Ave yesterday.

Joop said the tax treaty was necessary to encourage business activities between the two countries.

"The minister of finance of Mauritius has discussed the plan with our minister of finance and we are waiting for the ministry's approval," Joop said after a business forum of the second annual Indian Ocean Tourism Fair.

Mauritius, located in the Indian Ocean off the coast of Africa, announced yesterday it would increase its trade ties with Indonesia by expanding its offshore financial services sector.

Mauritius Minister of Finance Vasant Bunwaree said there were at least 38 private Mauritian corporations interested in developing business relationships with Indonesian companies.

"Mauritius is the key interface between the emerging and growing economies of Asia and southern and eastern Africa, being actively involved in regional cooperation and integration in the Indian Ocean rim," Bunwaree told the same forum.

Since 1992, when Mauritius introduced its offshore legislation and established a free port, more than 5,000 offshore entities have been registered and almost 400 free-port licenses issued, he said.

He said Mauritius aimed to become a major warehousing, distribution and marketing center in the region.

The country's total trade so far this year reached US$200 million, up 111 percent from 1996, he said.

He said goods into Mauritius came mainly from Asia and the Far East, and they were re-exported to countries in eastern and southern Asia. (das)