India

Keralam CM Satheesan Uses Chanakya’s Arthashastra to Explain Revenue Strategy

By PTI

Chief Minister V D Satheesan said on Wednesday that he had often quoted a principle from Chanakya’s Arthashastra while an MLA and later applied it after taking charge of the finance portfolio. He compared tax collection to a butterfly drawing nectar from a flower without disturbing it, to illustrate how the government aims to boost revenue without raising taxes. Satheesan cited the reduction in taxes on electric vehicles, which led to a sharp rise in sales and several retail outlets selling out within one or two months, as evidence that higher sales can increase tax receipts. He said, “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. Increasing taxes is not the solution.” He added that the government had injected money into the market during the Onam season to stimulate economic activity. Satheesan noted that Kerala’s GST collection grew 27 % in October, compared with a national average of 13 %, while the state’s October figure last year was minus 2 %. He said the state must continue to improve, attract more investment, and further stimulate the economy, noting that wholesale and retail businesses were doing well.

Chanakya, also known as Kautilya, was an ancient Indian philosopher, economist and political adviser who lived around the 4th century BC and is traditionally credited with writing the Arthashastra, a treatise on governance, economics, taxation and statecraft.