Finance Minister P. Chidambaram has disclosed that amendments to GAAR, the controversial law against tax avoidance through foreign investments, have been finalised. In an interview to PTI he said,

now it will go to the PMO for approval. GAAR (General Anti-Avoidance Rules), which was proposed in 2012-13 budget with a view to preventing tax evasion, evoked sharp reactions from foreign as well as domestic investors who feared that unbridled powers to taxmen would result in harassment of investors. The government later appointed a committee headed by tax expert Parthasarthi Shome to look into their concerns.

Mr. Chidambaram, during the interview, spoke on a variety of subjects including his optimism on meeting disinvestment and spectrum sales target, confidence on pushing through with reforms measures and the relationship with RBI which he said was not antagonistic.

Mr. Chidambaram said that government was keen to get the investment engine going and measures were being taken by the government to create a better climate.

Noting that the Council of Ministers and the party-government conclave were fully sensitised to the nature of the challenge, Mr. Chidambaram expressed the confidence that he will use the opportunity to sensitise the Opposition as well as Parliament. He ruled out any fiscal measures between now and the next Budget saying anything on the tax side would come up only in the Budget.