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Japan Tobacco FDI deal hits Mauritius tax controversy 

The government might put on hold foreign direct investment (FDI) proposals routed through Mauritius pending the revision of the current double taxation avoidance treaty with India.

This became evident after the department of revenue advised the Foreign Investment Promotion Board (FIPB) last week to reject a proposal by Japan Tobacco International (JTIL) Mauritius Pvt Ltd, a unit of the world's third largest tobacco company, to raise its stake in its Indian venture from 50 to 74 per cent on grounds that it comes under "treaty shopping".

"Treaty shopping" refers to the practice of routing investments by companies through a country like Mauritius that has a tax agreement with India. In this case, JTI Mauritius is looking to infuse $100 million in JTI India by increasing its stake.

A memorandum from the finance ministry to FIPB said if JTIL's foreign investment proposal is routed through the Mauritius unit, future capital gains, should JTI Mauritius sell its shares, will not be taxed under the provisions of India-Mauritius Double Taxation Avoidance Convention (DTAC).

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• L’ÉVÊQUE: Anti-tobacco hysteria kills free choice  

they’ve surfaced in Rodrigues. Of late, anti-tobacco lobbyists are pressing for a blanket ban on all tobacco-growing on the island. Or more precisely, they want a right possessed and exercised by people throughout recorded human history, taken away from hand-to-mouth dirt farmers. Lobbyists reckon tobacco damages health, and growing it on their doorstep only encourages Rodriguans to smoke. . . .

Will our crusading idéologues also picket fast-food outlets and rally to outlaw rum, phoenix beer, and salt? . . .

Let’s zoom in on a few realities. Once harvested, tobacco is dried and cured, then sold and shipped to Mauritius. As there are no tobacco factories in Rodrigues, all cigarettes must be imported. Not exactly on our doorstep, is it? . . .

800,000 people in Brazil, 16 million in India, 22 million in China, countless millions in Russia, Europe, America, Malawi, and in 120 other countries produce 7 million tonnes of tobacco a year. But lo and behold, it is the poverty-stricken farmers of this small country that zealots want sacrificed on the altar of health evangelism. Simply put: Business as usual for Big Tobacco but bridle the little guy with chains of steel. . . .

The free individual is not accountable to society for his actions in so far as these concern the interests of no person but himself. Advice, instruction, persuasion and avoidance by other people, if thought necessary by them for their own good, are the only measures by which society can justifiably express its dislike or disapprobation of his conduct.

Education to dissuade children from taking up smoking, and support for smokers wanting to quit or manage their habits may help – stunts won’t.

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TV Pick of the Day: Duncan Bannatyne Takes On Tobacco 

1st July 2008

By BBC2, 9pm

Duncan Bannatyne is on the warpath tonight in a special BBC2 documentary.

In DUNCAN BANNATYNE TAKES ON TOBACCO, the Scottish entrepreneur reveals the alarming rise in under-age smoking amongst kids in Africa - and points the finger of blame directly at British American Tobacco and their marketing tactics.

In one primary school class that Duncan visits in Mauritius, non-smokers are actually in the minority.

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• Critic's choice - This World: Duncan Bannatyne Takes on Tobacco (BBC2) 

Entrepreneur and Dragons' Den hardman Duncan Bannatyne explores the lamentable world of tobacco advertising in the developing world.

He visits Mauritius, Nigeria and Malawi, investigating the sales strategy of British American Tobacco - a company which made a £2.1billion profit last year.

Bannatyne believes he's found evidence that suggests BAT is breaking its own code of conduct about the accessibility of cigarettes to children, and after researching the situation in each of the three African countries, he returns to London to confront BAT with his findings.

However, Bannatyne fails to create a sense of urgency, even though he talks to people who started smoking at the age of nine.

The programme looks at length at what young Africans know about the dangers of smoking, and finds that some schoolchildren smoke because they believe it "makes them wise".

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• British American Tobacco denies breaking youth code on cigarette sales 

Tobacco giant British American Tobacco PLC has denied claims made by a BBC investigation that it is breaking its code regarding the sale of single cigarettes, seen as more attractive to child smokers.

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• Tobacco giant 'breaks youth code' 

covering the sale of cigarettes to young people in Africa.

An investigation for the BBC has found evidence in Nigeria, Malawi and Mauritius of rules being broken.

In particular, BBC Two's This World found single cigarettes - which campaigners say are attractive to young people - were being promoted and sold.

The company involved, British American Tobacco (BAT), says it does not encourage the sale of single "sticks".

During the investigation carried out for BBC Two's This World programme, British businessman Duncan Bannatyne also discovers tactics used by BAT which circumvent bans on advertising and raise the profile of cigarettes in countries where doctors are warning of a potential epidemic of smoking-related diseases.

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BHOOKUN: Smoke Gets in Your Eyes  

I have two questions for you.

First, do you really believe that smokers endanger the health of non-smokers? The "ayes" would undoubtedly "have it" as they say there, where they vote the laws.

But do you know that this has never been proved true?

You are not to be blamed though - a lie repeated often enough becomes the truth, it's well known. . . .

It seems it doesn't matter what the answers to these questions are because, you see, "developed countries" have introduced this repressive law, so that makes it right.

Well that's utter nonsense; developed countries do act stupidly as well, you know. Besides the fact that this measure is phenomenally ridiculous, it poses the problem of expediency; how on earth will the authorities ever be able to control smoking in closed areas? . . .

We vote laws because we have to be seen to be politically correct but who cares that they're not enforced? Who cares that we are making a mockery of the rule of law? On top of being a pain in people's backside, that is.

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Mauritius moves against tobacco addiction 

Health minister Satish Faugoo of Mauritius Thursday launched a plan of action against tobacco addiction, while attending a workshop at the Rajiv Ghandi Scientific Centre, in Bill Village, near Pourt-Louis, to celebrate World No Tobacco Day.

This plan of action will serve as an efficient tool for eradicating smoking and its related-devastating effects on the Mauritian population, the minister said.

This concerted first step towards eradicating smoking will help to reduce the number of tobacco-related deaths and other diseases, while also rolling passive tobacco addiction back, he observed.

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• Authorities in Mauritian capital go tough on smoking 

Reza Issack, Mayor of Mauritian capital Port-Louis City Council, announced Thursday that public places under the Council`s jurisdiction would soon be declared non-smoking areas for three months as part of a non-smoking campaign.

He said the campaign was aimed at increasing public awareness on the right to health and the dangers of air pollution caused by cigarette smoking in public and work places.

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JEANNOT: LETTER TO MY KIDS Tobacco: dump the smoky killer 

The Red Indians believed that clouds floating in the sky were a result of gods smoking the prized leaves, which until the 'discovery' of America by Columbus was unknown to the rest of the world. The use of this almost worshipped plant was controlled by religious rituals. The Indians had tamed a killer, which now claims a human life every 6.5 seconds, around 5 million lives annually.

Tobacco was never meant to be used on a regular basis as a pastime, a meal, an inseparable friend holding a dagger behind its back. In fact, tobacco smoking is a dangerous habit. . . .

While we cannot turn back the clock and ask the explorers of the New World to dump the pungent smelling plants in the sea for good instead of bringing them back home where their wrong use has developed into a dangerous yet lucrative industry, we still can dump the habit and any temptation to give into it. Your body is not meant to be a dumping ground for poisonous smoke, why not choose to be healthy, save money, be free and choke the deadly industry?

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• Le tabac pas une industrie de charité, car il tue [Tobacco is not a charitable industry, because it kills] 

Véronique Leclézio, director of the ViSa (Vie-Santé) association, reminds us each year that British American Tobacco (BAT) scholarships must stop. The spearhead of the antitobacco lobby in Mauritius explains why.

Each year you object to BAT's scholarships. Why?

This scholarship programme was launched in 1999, at the time that tobacco advertising was banned in Mauritius. We know that advertising is essential for business. The tobacco industry had to find a way to circumvent the ban by using this marketing technique of scholarships for young students.

Youth is the real target of the tobacco industry because 90% of smokers start smoking before the age of 20, according to the World Health Organisation.

So, you can't see anything good in the tobacco industry. Don't you trust its 'Social Responsibility'?

But where does this money come from? It is not a charitable industry, it is an industry that kills. Nothing could make us forget that these profits are made at the expense of people's health. . . .

The most important event is the ratification by Mauritius of the Framework Convention on Tobacco Control. . . .

BAT gives university grants to ten students 

Navin Ramdoyal has received the best student award by British American Tobacco (BAT) . This prize rewards one of the BAT undergraduate students, who has not only successfully completed his/her studies at the University of Mauritius but has also been active in university life. Like Navin, ten other students were given the chance to pursue tertiary education this year.

The Undergraduate Scholarship Scheme is one item of a social programme launched by BAT to participate in the development of Mauritius. . . .

As a member of Media Watch Organisation and Soroptimists International, which both militate against smoking, Manda Boolell hesitated for a long time before accepting to sit on the interview panel. But she confesses that she does not regret her decision. "If every company can allow society to make a step forward, it is positive. Anyway, it is up to each individual to decide whether he/she wants to smoke or not."

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Suspension of dealings in the Shares of British American Tobacco 

 With reference to the Cautionary Announcement of British American Investment Co. (Mtius) Ltd (BA Investment) of April 7, 2004, the Stock Exchange of Mauritius wishes to inform the shareholders of BA Investment and the public that, pursuant to Listing Rule 13.11, dealings in the shares of BA Investment on the Official List of the Stock Exchange are suspended with immediate effect until the issue of a Substantial Transaction Circular to shareholders by BA Investment

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Cigarette prices rise in Mauritius  

Prices of different brands of cigarette have risen by between 2.9 and 4.3 percent in Mauritius.

The British American Tobacco (BAT), the sole tobacco manufacturer on the island, said in a statement the price of a 10-unit pack of cigarette had been increased by one rupee and the 20-unit pack by two rupees. (29.8 rupees = 1 USD).

A BAT official blamed the price increase, which took effect from Monday on Added Value Tax, which rose from 12 to 15 percent 1 July.

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Tobacco Industry Launches Anti-Youth Smoking Programme 

The British American Tobacco (Mauritius) launched Wednesday the Youth Smoking Programme to discourage vendors from selling cigarettes to minors. Manoj Ujoodha, Corporate and regulatory affairs manager told PANA in Port-Louis that smoking is an adult choice and that minors should not smoke.

He recalled a study by the Mauritian health ministry conducted last year which indicated that most under-age smokers buy their own cigarettes and that their behaviour is linked to three factors - smoking parents, smoking brothers and sisters and alcohol-consumption. "These conclusions have been communicated to vendors."

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