Keralam CM Satheesan invokes Chanakya's Arthashastra to explain tax strategy

Keralam Chief Minister V D Satheesan on Wednesday invoked a principle from Chanakya's 'Arthashastra', comparing tax collection to a butterfly drawing nectar from a flower without disturbing it, to explain his government's approach to boosting revenue without increasing taxes.The chief minister also said the government had pumped money into the market during the Onam season to stimulate economic activity. (X/ @vdsatheesan )The chief minister said he had often quoted the principle as an MLA and later put it into practice after taking charge of the finance portfolio, citing the reduction in taxes on electric vehicles as an example.Satheesan said the tax cut, despite criticism at the time, led to a sharp increase in sales, with several retail outlets selling out their stocks within one or two months and having to bring in more vehicles from outside the state."What would we have got if the existing tax had continued. We got more tax because sales increased. That is one approach without increasing taxes. That is our solution. Increasing taxes is not the solution," he said."That is why I had once said that it should be done like a butterfly sucking nectar from a flower without the flower even knowing it. Do you now understand what I meant. I did not come up with that idea. It is mentioned in Chanakya's Arthashastra," he said.Addressing a press conference after a Cabinet meeting, Satheesan recalled that he had spoken about the principle several times in the Assembly when he was an MLA but could implement it only after becoming finance minister."People made fun of me so much when I said that. I liked that concept. I had spoken about it several times in the Assembly when I was an MLA. Back then, I could not implement it. But when I became the finance minister, I put it into practice," he said.Chanakya, also known as Kautilya, was an ancient Indian philosopher, economist and political adviser who lived around the 4th century BC during the Mauryan period.He is traditionally credited with writing the Arthashastra, a book on governance, economics, taxation and statecraft.The chief minister also said the government had pumped money into the market during the Onam season to stimulate economic activity.Citing GST figures, Satheesan said the state recorded a 27 per cent growth in GST collection in October, against the national average of 13 per cent. The corresponding figure for Keralam in October last year was minus two per cent."But I am not satisfied. We are not satisfied. We have to improve. We need more investments, and we will stimulate the economy," he said.He added that wholesale and retail businesses were also doing well, but said the state needed to attract more investments and further stimulate economic activity.