RSS groups’ Budget demands: ‘Robot tax’ for AI use, tax-free agri equipment, cow university

Ahead of it, the government has been holding consultations with various stakeholders. Sources said one such meeting with representatives of the Sangh was held by Finance Minister Nirmala Sitharaman last month.

In its suggestions, the BKS has said farmers must either get input tax credit under GST like other manufacturers, or their inputs and agricultural equipment — tractors, etc — must be made tax-free. “One of the fundamental features of GST is the seamless flow of input credit across the country as well as across the chain (from the manufacture of goods, till their consumption). Farmers are producers. Most of the inputs they are using to produce crops are taxed highly under the GST regime. Farmers are not getting any input tax credit,” BKS general secretary Mohini Mohan Mishra told The Indian Express.

“So, either there must be some provision for farmers to get input tax credit, or all farming inputs and implements should be made GST-free,” Mishra said.

The BKS has also demanded that subsidies on fertilisers and agricultural equipment must come directly to the farmer through DBT, and not given to companies.

The suggestions by the SJM include differential tax on companies on the basis of the number of jobs they create, and the imposition of a ‘robot tax’ on companies retrenching employees due to automation.

“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. The world over, robot tax is being talked about. This issue came up at the meeting (with the Finance Minister) too. Companies using AI in place of manpower should be taxed. The revenue thus earned, can be used to skill people. I am not saying that you have to implement it right away, but a roadmap should be prepared,” said SJM co-convenor Ashwani Mahajan.

Mahajan also batted for tax on the basis of job creation. “Today, a company that earns Rs 100 crore but employs 10 people, and a company earning Rs 10 crore but giving 200 jobs, have to pay the same tax (in percentage terms). Can we have a ratio of jobs-to-tax?” Mahajan said.

The SJM has also suggested that the Production Linked Incentive (PLI) scheme should be extended to the Micro, Small and Medium Enterprises (MSME) sector, which is the biggest job creator in the Indian economy.

Among its suggestions, the BKS has said that allocation for Kisan Samman Nidhi should be increased, since input cost for farmers has gone up. It also demanded “sufficient budget for research, development and distribution of indigenous cow, goat, etc… and Budget allocation for a cow-based central agriculture university”.

“Adequate provision should be made in the Budget for agricultural research, development and extension, so that institutions like the Indian Council of Agricultural Research are not forced to enter into agreements with foreign companies for research,” Mishra said.