Kerala CM VD Satheesan declares zero tolerance for tax evasion in state

Kerala CM VD Satheesan announced a strict, zero-tolerance approach to tax evasion, vowing to protect genuine taxpayers. He also refuted LDF's privatisation allegations, stating the previous LDF govt initiated the mineral sand deal with a private firm.

Taking a hard line on state fiscal discipline, Kerala Chief Minister VD Satheesan announced an uncompromising, zero-tolerance approach toward tax evasion, promising full state protection to genuine businesses while aggressively pulling the rug out from under illegal traders. Speaking during an intense budget discussion in the Kerala Legislative Assembly, the Chief Minister laid out a dual challenge posed by tax evaders, warning that their practices simultaneously dry up public funds and drive ethical local merchants out of business.

Zero-Tolerance on Tax Evasion

Chief Minister Satheesan detailed how tax evasion cripples the local economy, explaining that illegal trade unfairly penalises business owners who operate transparently within the framework of the law. "The government will take a strict stand against tax evasion. There will be no compromise with tax evaders," CM Satheesan asserted on the Assembly floor. "Tax evasion creates two major problems. First, it deprives the state exchequer of legitimate revenue. Second, when tax evaders engage in illegal trade, they unfairly compete with genuine taxpayers who pay rent, electricity and water charges, employ staff, pay salaries, and comply with all tax obligations."

The Chief Minister stressed that when illicit traders bypass state taxes, honest establishments are systematically squeezed out of the market. "As a result, honest businesses are forced to shut down, and the government ultimately suffers the greatest loss. We will fully support and protect genuine taxpayers, but our approach towards tax evaders will be uncompromising."

CM Rejects Privatisation Allegations

Shifting his focus to intense political crossfire over the state budget, Chief Minister Satheesan strictly rejected claims by the Left Democratic Front (LDF) Opposition that his government was surrendering public infrastructure to corporate entities. The Chief Minister challenged lawmakers to find a single piece of evidence supporting allegations of corporate handouts within his fiscal roadmap.

Previous LDF Govt's Role Exposed

"There is not a single mention of privatisation in the Budget. When we spoke about the Mineral Corridor, there was not even one sentence about privatisation," Satheesan fired back. "Yet the Opposition accused us, even though it was the previous LDF government that had already reached an understanding with a private company."

To back up his defence, the Chief Minister brought official state board files to light, revealing that the contentious groundwork to involve private players in Kerala's mineral-rich beach sands was entirely authorised under the previous administration's watch. The Kerala Minerals and Metals Limited (KMML) Board under the previous LDF government explicitly decided to invite global e-tenders for monazite cracking via private sector participation. After three global entities submitted official bids, the previous board passed a resolution formally approving the award of the contract to Midwest Limited under standard tender regulations.

"These are all official Board decisions taken during the LDF government's tenure," CM Satheesan concluded, calling out the hypocrisy of the week-long protests staged against the current leadership. "Despite this, they spent a week alleging that our government was handing over Kerala's mineral wealth and beach sand to private players. The Budget contains no such proposal. It was the previous government that moved ahead with the monazite cracking project and approved the deal." (ANI)

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