New Delhi : The government is considering a review of India’s tax treaty with Mauritius to raise inflows of Foreign Direct Investment through that country.

In reply to a question in the Lok Sabha today, Minister of State for Finance S.S. Palanimanickam said a substantial percent of foreign investment in the country flows through Mauritius.

Over 39 percent of total Foreign Direct Investment in India came through Mauritius between April 2000 and February 2012.

The Minister said the government has proposed to review the India-Mauritius Double Taxation Avoidance Convention, DTAC, to incorporate appropriate amendments in it to prevent treaty abuse.

This will also strengthen the mechanism for exchange of information on tax matters between India and Mauritius, he said.