As the Indian government prepares for Budget 2024-25, various stakeholders, including the Swadeshi Jagran Manch (SJM) and Bharatiya Kisan Sangh (BKS), have presented their demands. A prominent and innovative suggestion among these is the implementation of a ‘robot tax’ for companies utilizing Artificial Intelligence (AI) in place of human labor. This proposal, along with tax exemptions for agricultural equipment and the establishment of a cow-focused agricultural university, highlights the multifaceted approach to economic growth and sustainability.
Proposal for a ‘Robot Tax’
Addressing Job Losses Due to AI
The Swadeshi Jagran Manch (SJM) has raised concerns about the increasing use of AI and automation, leading to significant job losses in various sectors such as BPOs, software, and media. SJM co-convenor Ashwani Mahajan stated, “Unemployment is an issue. People are losing jobs due to the advent of Artificial Intelligence (AI). There are job losses in BPOs, software, and media.” To counter this, the SJM has proposed a ‘robot tax’ on companies that replace human employees with AI systems.
Generating Revenue for Skill Development
The revenue generated from this ‘robot tax’ could be channeled into skill development programs, helping the workforce adapt to the changing technological landscape. Mahajan emphasized the need for a roadmap, stating, “Companies using AI in place of manpower should be taxed. The revenue thus earned can be used to skill people.” This approach aims to create a balance between technological advancement and job creation, ensuring that the workforce is not left behind in the AI revolution.
Encouraging Job Creation
Additionally, the SJM has suggested a differential tax structure based on the number of jobs a company creates. Mahajan highlighted the disparity in the current tax system, where companies with vastly different employment numbers pay similar taxes. He proposed a ratio of jobs-to-tax, where companies providing more employment would benefit from tax incentives, thus encouraging job creation and reducing unemployment.
Other Key Proposals
Tax-Free Agricultural Equipment
The Bharatiya Kisan Sangh (BKS) has put forth a demand for either input tax credit under GST for farmers or the removal of GST on agricultural equipment. BKS general secretary Mohini Mohan Mishra explained that farmers should receive the same tax benefits as other manufacturers since they are producers. The high GST rates on farming inputs have made it difficult for farmers to benefit from input tax credits, prompting a call for GST-free farming inputs and implements.
Direct Benefit Transfer for Subsidies
The BKS also proposed that subsidies on fertilizers and agricultural equipment be directly transferred to farmers through Direct Benefit Transfer (DBT) instead of being provided to companies. This change aims to ensure that financial benefits reach farmers directly, enhancing their productivity and profitability.
Increase in PM Kisan Samman Nidhi Allocation
Given the rising input costs for farmers, the BKS urged the government to increase the allocation for the PM Kisan Samman Nidhi scheme. This scheme provides financial assistance to farmers, and an increase in its allocation would help mitigate the rising expenses in the agricultural sector.
Cow-Focused Agricultural University
Another significant demand is the establishment of a central agricultural university focusing on research and development related to indigenous cows and other livestock. This proposal aims to boost research in traditional livestock farming practices, crucial for sustainable agriculture.
Supporting MSMEs
The SJM recommended extending the Production Linked Incentive (PLI) scheme to the Micro, Small, and Medium Enterprises (MSME) sector. MSMEs are significant job creators in the Indian economy, and extending PLI benefits to this sector could further stimulate job growth and economic stability.
Conclusion
The diverse and forward-looking proposals by the RSS’s associate organizations, SJM and BKS, reflect a balanced approach to supporting both technological advancement and traditional sectors like agriculture. By addressing job creation, tax structures, and the direct support of farmers, these recommendations aim to foster a more inclusive and sustainable economic environment.
