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.
“What would we have got if the existing tax had continued. That is one approach without increasing taxes. That is our solution. Do you now understand what I meant. I did not come up with that idea. 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. 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.
Because sales increased, we got more tax.
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. 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. It is mentioned in Chanakya’s Arthashastra,” he said. “People made fun of me so much when I said that. But when I became the finance minister, I put it into practice,” he said.
The chief minister also said the government had pumped money into the market during the Onam season to stimulate economic activity.
