The Union Cabinet, chaired by PM Narendra Modi, approved an agreement between India and Saint Vincent & the Grenadines (SVG) for the exchange of tax information and assistance in the collection.

Highlights of the agreement:

The agreement will help in facilitating the exchange of information between the two countries, including sharing of information held by the banks and other financial institutions encompassing the information regarding the legal and beneficial ownership. 

It will facilitate the assistance in the collection of the tax claims between the two countries. 

It will strengthen India’s commitment to fight offshore tax evasion and tax avoidance practices, leading to the generation of unaccounted black money.

The agreement also contains tax examination abroad provisions, which provide that a country may allow the representatives of the other country to enter its territory to interview individuals and examine records for tax purposes.

There was no such agreement with SVG in the past and India was negotiating this agreement for a long time. 

Finally, SVG agreed to conclude this agreement with India, which will promote tax cooperation between the two countries through the exchange of information and assistance in the collection of outstanding tax claims between the two countries.

St Vincent & The Grenadines

St Vincent & The Grenadines (SVG) lies in the eastern Caribbean Sea. It is made up of the island of St Vincent and the northern Grenadines, a group of 32 smaller islands and cays (low banks of coral or rock) to the south.

The southern Grenadines are part of Grenada. 

SVG is volcanic, with one volcano still active, and mountainous.

Natural disasters have plagued the country throughout the 20th century.

Following a referendum in 1979, SVG became the last of the Windward Islands to gain independence from the British. 

SVG is a parliamentary democracy within the Commonwealth of Nations. Queen Elizabeth II is head of state and is represented on the island by a governor general, an office with mostly ceremonial functions. Control of the government rests with the prime minister and the Cabinet.

As in other English-speaking Caribbean countries, the judiciary in SVG is rooted in British common law.

The currency in the country is the Eastern Caribbean dollar (EC$), a regional currency shared among members of the Eastern Caribbean Currency Union (ECCU).

Relations with India

India and Saint Vincent & the Grenadines (SVG) enjoy close and cordial relations in the bilateral and multilateral fora.

SVG has been supporting India’s candidature on various multilateral platforms including elections of different bodies under the UN.

Indian exports include textiles, iron & steel and paper.

Under the development partnership programme, India sent a medical aid package to Saint Vincent and Grenadines including 10,000 HCQ tablets, essential medicines and medical equipment. Several Quick Impact community development projects are also under implementation.

Three community development-related projects under MoU on Quick Impact Project with grant from India are in progress.

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