Letters: Wrong move on GAAR

This refers to the editorial “Watering down GAAR” (January 16). It is unfortunate that the government has shelved the implementation of the General Anti-Avoidance Rules (GAAR) under pressure from foreign institutional investors, instead of defining the rules and the modality of their implementation to save genuine investors from being harassed. Dollar flow through FIIs does not help in asset creation or employment generation. Foreign investors bring money (mostly stashed) through tax havens for speculative trades in the stock exchanges and thus, deserve to be taxed. The decision to defer GAAR might bring a few million dollars inflow and help contain the current account deficit marginally, but it will affect our economy adversely in the long run.

 

N Ramamurthy, Chennai

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