Read the passage and mark the letter A, B, C or D on your answer sheet to indicate the best answer to each of the following questions from 31 to 40.
Once a sci-fi curio, automation now permeates daily life – from driverless vehicles to voice assistants and parcel drones – while public coffers quietly thin out. Robot tax is a policy idea meant to recoup revenue as firms substitute human labour with automated systems. It typically envisions two routes: a per-“robot employee” levy mirroring Income Tax, or a higher Corporation Tax rate on enlarged profits generated by automation. [I] The receipts, its advocates argue, could bankroll reskilling and buffer the social dislocation that abrupt technological shifts often intensify.
Supporters say the measure answers two entwined problems: rising unemployment linked to mechanised efficiency and the erosion of wage-based tax bases that fund social care and education. Bill Gates popularised the notion as a brake to soften automation’s precipitous pace so communities can adapt. He further contends that innovation must not offload costs onto vulnerable groups and that governments should squarely address this issue rather than let markets alone arbitrate the transition. [II] In short, taxation would buy time – and tools – for a fairer adjustment.
To date, only one country has taken a concrete step. South Korea in 2017 modified its corporate tax rules to dampen incentives for automation rather than impose a per-machine levy. South Korea introduced a form of robot tax in 2017 by trimming corporate tax incentives for automation, not by taxing individual machines. Calls for similar policies arise periodically in Canada, the US, the UK and the EU, yet no jurisdiction has advanced beyond debate, suggesting persistent uncertainty about scope, design, and downstream effects. [III]
Proponents tout multiple upsides: clawing back forgone Income Tax, curbing profit-shifting by multinationals, slowing job losses, and even underwriting a modest universal basic income. Detractors reply that the tax may be unnecessary, productivity-sapping, and conceptually fuzzy – what exactly counts as a “robot”? An extortionate levy, they warn, could chill innovation and raise prices. [IV] Alternatives on the table include boosting Corporation Tax, increasing Capital Gains Tax, or applying higher VAT to purchases of automation technology, thereby raising revenue without a bespoke “robot” label.
(Adapted from https://taxfix.com/en-uk/blog/what-in-the-world-is-robot-tax/)
Question 31. According to paragraph 1, robot tax proposes either ______?
A. tax each robot like income, or increase corporation tax on profits.
B. tax workers directly, or reduce tariffs on imported industrial machinery.
C. apply payroll levies to managers, or subsidise robotic capital purchases.
D. impose VAT on wages, or abolish corporate income taxation entirely.
Question 32. The word extortionate in paragraph 4 mostly means ______.
A. excessively expensive B. marginally fair
C. moderately cheap D. slightly negotiable
Question 33. Which of the following best summarises paragraph 2?
A. It claims automation will soon eliminate all jobs and public services entirely.
B. It argues governments should slow automation’s pace and fund humane adjustment.
C. It predicts charities, not states, must manage technological dislocation and retraining.
D. It explains why consumers, through higher prices, will finance all transition costs.
Question 34. What is the intended use of revenue raised by a robot tax?
A. Retraining programmes and employment support for workers displaced by automation nationwide, and reskilling grants
B. Marketing budgets to promote consumer adoption of new robotic household assistants exclusively
C. Shareholder dividends to offset dilution from capital-intensive automation investments only
D. General defence spending increases, regardless of automation’s labour-market disruptions
Question 35. What key difficulty hampers policy design for a robot tax?
A. Defining what counts as a robot B. Tracking every hourly wage payment
C. Determining global oil price trends D. Forecasting quarterly retail demand
Question 36. The phrase this issue in paragraph 2 refers to ______.
A. job displacement B. tax havens C. UBI D. drones
Question 37. Which of the following best paraphrases the underlined sentence in paragraph 3?
South Korea in 2017 modified its corporate tax rules to dampen incentives for automation rather than impose a per-machine levy.
A. Lawmakers introduced payroll surcharges on robotic deployment, calculating obligations proportional to machine-hours, subsequently offering rebates if displaced workers secured equivalent employment.
B. Korea prohibited factory automation technologies, compelling manufacturers to dismantle automated lines and immediately reconstitute human labor forces to reclaim tax deductions.
C. Rather than establishing unit-level fiscal assessments, Korean policymakers diminished preferential deductions subsidizing mechanization, attenuating substitution incentives without machine-specific enumeration systems.
D. Regulatory authorities established import quotas on industrial robots, collecting per-unit customs duties, with revenues earmarked for regional manufacturing subsidies and incentives.
Question 38. Which of the following can be inferred from the passage?
A. If widely adopted, a robot tax could partly offset fiscal losses while policymakers phase in retraining, though precise definitions and design remain politically contested.
B. Because South Korea taxed each robot directly, other countries will copy its levy, proving that machine-level charges are the simplest path to implementation.
C. Universal basic income is already funded by robot taxes in multiple jurisdictions, demonstrating immediate consensus about the policy’s fairness and macroeconomic efficiency.
D. Firms are legally obliged to replace all human workers with robots once profits surpass a threshold, making revenue replacement the sole objective of modern taxation.
Question 39. Where in the passage does the following sentence best fit?
Critics warn that any levy could blur boundaries between ordinary software and autonomous systems, creating compliance confusion for both taxpayers and administrators.
A. [I] B. [II] C. [III] D. [IV]
Question 40. Which of the following best summarises the passage?
A. The text defines robot tax, surveys its rationale and one real-world variant, weighs pros and cons, and sketches standard fiscal alternatives to a bespoke levy.
B. The text offers technical formulas for calculating robot taxes, with detailed schedules for every sector and penalties for firms delaying compliance with automation audits.
C. The text chronicles the complete failure of automation, concluding that innovation generally reduces profits and permanently suppresses living standards across industrial economies.
D. The text argues that only universal basic income can solve automation, dismissing taxation as ineffective and politically impossible in all contemporary democracies.