Tax havens and Mauritius

While the rest of the world fumes over tax havens, there appears to be no concern over the huge leakage of tax revenues on the Mauritius front. While I think the Mauritius route was a way of attracting foreign capital when we were desparate, I see no reason why we must penalise our own shareholders with capital gains tax (they must pay the tax in several non Securities Transaction Tax scenarios) while allowing foreign investors the benefit of the abusive tax treaty. While this is the worst time to repeal the treaty, it is at least good time we start thinking about repealing the treaty. The treaty is renewable each year and can be repealed by either side.