New Delhi: The government should not implement the General Anti-Avoidance Rules (GAAR) in the current economic environment, as it would dent the investments globally and a post-benefit advantages analyses is need before implementation, industry body Assocham said Thursday.
"This is the time to restore the fading industrial confidence and encourage larger investments both by the foreign entrepreneurs and domestic business houses," Assocham President Rajkumar Dhoot said.
"Our plans to open up FDI in several sectors will face fire wall if the present form and intent is not fully addressed for a clearer and positive intent," he said.
GAAR is not acceptable in the present form as it does not address the apprehensions and expectations of larger stake owners at home and abroad and stakeholders' and consultation is needed before its implementation, the industry body said.
"We should not give room to uncertainty and if we do not wish to honor the stipulations in the treaties entered with Mauritius and Singapore we should clearly come out of the policy," he said.