Pranab Mukherjee said on Tuesday India has resumed talks with Mauritius on a double taxation avoidance agreement (DTAA).
“So far as the Mauritius double taxation avoidance agreement negotiations are concerned, it is an old one. For some time the talks were suspended; now it has resumed,” Mukherjee said.
The Indian government has been under pressure from opposition parties to renegotiate a treaty blamed for huge revenue losses, as Indian investors ship their money to Mauritius and then funnel it back untaxed.
Indian officials have said the country was losing more than USD 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.