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Monday, 08 January 2018

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Lawal Arishekola

Robots can't be taxed as they won't enjoy any of the basic amenities provided by the government, the tax authorities will find a way to get more tax remittance from companies using more than a certain percentage of Robots compared to man, with that, I think it will be a win-win situation.

Damilola Aboderin

If in the long run Robots are adopted in the Nigeria market from your blog , the expected impact would be initial significant costs for manufacturing companies towards funding acquisition, shortly afterwards it is expected there would be reduction in wages and salaries, would reduce inefficiency and variances that subtly exists in the sector be next to zero.
This should lead to an increase in the PBT as well as an increase in income taxes payable to the teax authority, it is a function of loosing at one end of PAYE and gaining on the other end of CIT & EDT.

ilias

This is a very dicey issue. The current legal framework does not permit the taxman to charge "personal income tax" on robots the way he does on human employees. The philosophy of tax is also built on the principles of 'social contract' that government will provide social amenities in return for collection of tax. It has been argued by a commentator above that robots will not enjoy these amenities. However, it can also be argued that the amenities such as electricity can be used to power the functionality of robots. On the whole, I think it is fair to tax the process of acquisition/transfer of robots than to treat them equally with human employees who earn wages and salaries.

Nojeem 'Nudge' Yusuf

@Iliais and Lawal - Thank you for your comments. Robots are machines. We've always had machines. With machines, the number of human beings you'll need to employ is reduced, and that's exactly what happens when you use a robot in your business.

There was never being a time taxes were imposed on acquisition of machines, in fact what we have in Nigeria is that the business that acquires machines for use in its business is granted additional tax incentive.

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