Robot Tax To Combat Unemployment Due To Use of Robotics & AI

????In the recently held meeting of the Finance Minister Ms Nirmala Sitharaman with the leading economist of the country has laid emphasis on the development of MSME to make India a manufacturing hub of the world. In this era of Industry 4.0 the use of Robotics, AI, ML, IOT etc. tool is inevitable to make India an International Manufacturing Hub. However with the excessive use of modern day tools like Robots and AI in the manufacturing sector and service sector a danger of huge unemployment is expected . To combat such unemployment the imposing of “Robot Tax” in the coming budget is proposed . Robot ?Tax on companies that deploy AI and robotics that are capable of autonomous decision-making could provide economic support for displaced workers as well as an incentive for strategic decision-making about automation, particularly when the benefits are marginal. Bill Gates has argued that the best way to slow down the speed of automation so that society can cope with the transition is a Robot Tax. He opines that the Robot Tax would go towards improving education , reaching out to the elderly and helping people with disabilities as well as all jobs that require human empathy.

This Robot Tax will be laid on the Industry on the basis of their degree of use of Robots in their manufacturing and service process. Logic is that if a man can be imposed for giving the taxes why not the Robots which are replacing the job of a man. Every time when a worker looses their job due to its replacement by Robots the government looses its income tax revenue from that human being. The Robot Tax?helps to reduce or slow down the replacement of workers by machines which helps to protect the Government's tax revenue.? As per this proposal the tax collected will be used in the skill development of the workers to fill this technology gap . ?The government may also use this Robot Tax on various public welfare schemes ranging from supporting elder care and social welfare to education and retraining, thereby addressing disparities and ensuring that the benefits of the AI revolution are shared across the industry. How much feasible and viable this idea will be in future this is subject matter to examine and analyze.

On August 6, 2017, South Korea, under President Moon, passed what has been called the first Robot Tax.The Robot Tax is basically a legislative strategy of the government in a welfare state where the social and economic disparity is too much and unemployment is a basic problem the society and economy. The Robot Tax is basically to disincentivize the replacement of workers by the modern day technological application of Robotics , AI and ML etc. and create a sort of social safety threat. Although in the western world it is criticized as “Innovation Penalty” resulting into? reducing and discouraging? efforts on? “ Disruptive Technological Innovations” which is actually the need of hour. However in the country like India where the Socialist Economy is expected to be adopted no one can rule out the side effect of excessive use of modern day technology. ?In the current parliamentary elections in India the issue of increasing unemployment has been a major issue so no government dare to ignore such a vital and critical issue. That’s why the economist suggested exploring the idea of a “Robot Tax,” which could fund the reskilling and rehabilitation of workers affected by AI-driven displacement.

The recommendation of the Robot Tax by the Indian Economists are in alignment of the concerns of International Monetary Fund .The proposal of “Robot Tax” aligns with one of the paper by the International Monetary Fund (IMF) which has warned that although the Robotics and AI can enhance employment however it will be resulted into the heavy job loss which will be a painful situation for any worker. Although IMF is not in favour of “Robot Tax” , Implementing the Robot Tax may require extending legal personhood to robots in order to create a structured basis for interactions between robots, individuals, and the state. ?

While implementing the “Robot Tax” one of the major issue is that its very difficult to define the ROBOT. The definition of robot is so broad it could encompass almost all technology, as autonomous elements are present in most commonplace technology, such as a vending machine. The wide definition brings a very difficult challenge of defining when a job is actually replaced by a robot. This will generate a situation of ambiguity. Another challenge is that Robots can do repetitive jobs faster and in a much quicker manner. This leads to the less waste, uniform quality ,cheaper products and greater profits. A robot tax could be seen as actively discouraging the great productivity which is actually a benefit to society. The most crucial implications of the Robot Tax would be that it will discourage innovation.

To implement Robot Tax effectively its very important to clarify the legal relationship between the human being and the Robots/AI. Assigning a legal personality to the Robots would create a base for taxation , responsibility and ethical guidelines . In the Robot Tax , the Robot and AI has to be treated ?as a legal entity with certain rights and obligations enabling them ?to enter into a contract , will be accountable of certain actions and will be subject to? taxation as a legal entity. This situation will create lot of legal complications .

No doubt the Robot/AI is a need of hour in the current era of Industry 4.0 however social and economical balance is also needed before the Robot Tax. The Labour Policies and Social Protection Mechanism need to be reassessed before imposing the Robot Tax to make is viable. We need to ensure whether the Robot Tax will actually minimise the job loss due to the Robot/AI or its just an illusion. We need to understand that Robot/AI is replacing only those who are not having the required skills of Robotics /AI . If this skill gap is fulfilled through the Skill Development ?the Robot/AI may be helpful in creating more jobs however technological intervention with the human touch should always be taken care of.

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