Govt pushes to review Mauritius tax treaty

India and Mauritius will soon review a three-decade-old taxation treaty, misused by many Indian and multinational companies to avoid paying tax or to route illicit funds. In the decade to April, foreign direct investment flows into India from Mauritius totalled $55.2 billion, about 42% of the total $133 billion during that period.

Indian officials have said the country was losing more than $600 million every year in revenue because of the tax treaty, besides incurring the risk of militant groups using it to route money into India.