As the world is inching towards global tax framework, India expects to gain minimum about $12-13 billion annually in taxation, which it loses to offshore tax havens, once the framework is implemented and expects many companies shifting base back to India.
“Global tax framework is moving the way India wants it so it is a welcome move. Although the negotiations are still on and much will depend on the fine prints, our internal assessment suggests that even with a conservative estimate India will gain about $12 billion -$13 billion annually, which currently we are losing out. Also this will be a great disincentive for companies to shift base to low tax regime and will help in adding jobs as well,” a senior finance ministry official said.