World’s first tax to stem rise of robots initiated by South Korea
SOUTH Korea has introduced what is being called the world’s first tax on robots amid fears that machines will replace human workers.
The country will limit tax incentives for investments in automated machines as part of a newly proposed revision of its tax laws. It is hoped the policy will make up for lost income taxes as workers are gradually replaced by machines, as well as filling welfare coffers ahead of an expected rise in unemployment, according to the Korea Times.
Experts expect robot workers will replace humans in numerous roles in the near future, with some predicting that machines and artificial intelligence to take a third of British jobs by 2030.
The South Korean government said it will reduce tax deduction benefits for investment in automation, which had been introduced to boost productivity.
The proposal could come into force at the end of the year, when the country’s current tax law is due to expire.
“Though it is not about a direct tax on robots, it can be interpreted as a similar kind of policy considering that both involve the same issue of industrial automation,” an industry source told the Korea Times.
South Korea is the first country to implement a robot tax, but it is not the only one to have proposed a technology levy. Bill Gates, Microsoft’s founder, has previously called for a tax on robots. He said the levy could help slow down the pace of change and provide money to hire additional employees in sectors that require people, such as healthcare.
“Right now, the human worker who does, say, $50,000 (£38,000) worth of work in a factory, that income is taxed and you get income tax, social security tax, all those things,” said Mr Gates in February. “If a robot comes in to do the same thing, you’d think that we’d tax the robot at a similar level.”
Robotics companies have criticised such proposals, saying the tax would be detrimental to businesses and impede innovation.
British firms have already started trials of robots in the workplace, with roles including food delivery, reception and office management.