The Law Commission has suggested a host of changes in the model Bilateral Investment Treaty draft to make it more investment friendly and include a confidentiality clause. It has also suggested inclusion of the most favoured nation in the model treaty. It further recommended that the government procurement should not be excluded from the treaty protection.<br/><br/>The Commission also said it is not necessary to exclude taxation from the purview of the treaty as "power to tax is an integral part of the State's police powers in international law. This power exists independent of a treaty, unless the tax itself is arbitrarily imposed to destroy the State's regulatory freedom". <br/><br/>The report was submitted to Law Minister Sadananda Gowda by Law Commission Chairman A P Shah. The Union government is expected to come out with a comprehensive model Bilateral Investment Treaty, which will form the basis for renegotiation of the existing pacts and negotiating new ones with different countries. Government had decided to bring in a new framework after several multinational firms invoked bilateral investment protection agreements.