Shall robots pay taxes?

Dancing robots at the Beijing International Consumer electronics Expo. Image credit: Zhang Peng, LightRocket, Getty Images

Robots are becoming a growing population on the planet. According to the IFR report 2017 (International Federation of Robotics, issued in 2018) there is an increased growth, and demand for, cobots, collaborative robots and there are signs of demand for symbiotic collaboration between robots and humans.

74% of robots are being acquired by just 5 Countries, China (with 30% of the total), South Korea, Japan, US and Germany.

China and South Korea are leading the pack of Countries inserting robots in their industrial manufacturing processes. China is biggest adopter in absolute terms but South Korea is the biggest adopter as percentage of the work force.
They have now 631 robots per 10,000 human workers, US is trailing behind with 189 whilst China has 68.

The strong uptake of China is part of a program launched by the Chinese Government to keep China competitive in manufacturing as salary cost increases and robots are clearly showing to give an edge in manufacturing. In the automotive market the profit per worker in China is 48,000$ whilst in South Korea where the density of robots is much higher the yearly profit per worker is 152,000$. Chinese Government is also looking at the expected decrease of the working force in China, as consequence of the ageing population that is expected to reduce the current 998 million work force in the age 15-65 to 800 million by 2050.

Since 2010 China is the world largest manufacturer, producing 25% of world goods and automation is seen as menacing 77% of China manufacturing workforce. Hence the shift to cobots, robots that can increase profit not by replacing human workers but by working with them.

Still there will be significant job losses and Cai Fang, the president of the Chinese Academy of Social Science, has proposed to tax robots-workers to fund social security programs for workers losing their job.

About Roberto Saracco

Roberto Saracco fell in love with technology and its implications long time ago. His background is in math and computer science. Until April 2017 he led the EIT Digital Italian Node and then was head of the Industrial Doctoral School of EIT Digital up to September 2018. Previously, up to December 2011 he was the Director of the Telecom Italia Future Centre in Venice, looking at the interplay of technology evolution, economics and society. At the turn of the century he led a World Bank-Infodev project to stimulate entrepreneurship in Latin America. He is a senior member of IEEE where he leads the New Initiative Committee and co-chairs the Digital Reality Initiative. He is a member of the IEEE in 2050 Ad Hoc Committee. He teaches a Master course on Technology Forecasting and Market impact at the University of Trento. He has published over 100 papers in journals and magazines and 14 books.