Tax Expert Fan Yong: Taxing AI Is Not Simply a Question of To Tax or Not to Tax

Professor Fan Yong, Dean of the School of Public Finance and Taxation at Central University of Finance and Economics, recently shared in-depth views on the global hot topic of AI taxation. Fan emphasized that taxing AI is far from a simple binary question - it involves multiple dimensions including tax fairness, technology neutrality, and international tax coordination. On one hand, AI replacing human labor could erode tax bases, requiring tax system adjustments for fairness; on the other, overly aggressive AI taxes could stifle innovation and harm national competitiveness. Fan recommended a three-pronged approach: first, actively participate in global AI tax rule negotiations through organizations like the OECD; second, pilot domestic tax schemes adapted to AI economy characteristics, such as adjusting digital service tax frameworks or exploring robot taxes; third, establish an AI economic tax impact assessment mechanism to dynamically monitor AI's effects on tax bases and employment. He stressed that policy design should maintain technology neutrality to avoid distorting market choices through tax policy.