The government today said the delay in implementation of General Anti Avoidance Rules (GAAR) will not impact the drive against black money and tax evasion. In a written reply to the Lok Sabha, Finance Minister P. Chidambaram said the delay in implantation of GAAR would not have a significant impact on the efficacy of measures being taken against proliferation of black money and checking tax evasion.

Introduction of GAAR, which was proposed in the Budget 2012-13 to check tax evasion, had triggered strong opposition by foreign investors following which its implementation was postponed till April 2013. Following this, the Finance Ministry in June came out with draft guidelines on GAAR and had invited stakeholders comments on the same.

Later, the Prime Minister set up an expert committee under ICRIER chief and taxation expert Parthasarathi Shome to hold fresh consultations on the controversial tax issue. Mr.Chidambaram said, the expert committee is examining the suggestions received from various stakeholders.

In a separate reply to a question, Minister of State for Finance S. S. Palanimanickam said the taxation policy of the government strikes a balance between revenue needs and focus on inbound investment.