Acti calls for govt to eliminate obstacles for global services, software

Monday, May 16, 2011

Chile's government ought to eliminate hurdles for the local global services and software industry as soon as possible, IT industry association Acti president Raúl Ciudad said during a national global services meeting in the country, according to a press release.

Ciudad called the matter "urgent," saying government needs to diminish the locks it has on the industry that are slowing down the sector's international expansion process.

One issue he highlighted was the value-added tax placed on exports, noting the burden of not being able to recuperate the tax on the export of global services.

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Additionally, Ciudad said a 15% tax on software exports should be terminated, as well as the 35% tax on service imports. According to Ciudad, these taxes make local production more expensive and limit Chile's access to external resources.

Executive VP of state development agency Corfo Hernán Cheyre said efforts have been made in Chile to contribute to the industry's growth, building qualified human resources and creating chances for the country to become a technological platform for global services.

According to Ciudad, it will be hard for local companies to continue operating if the industry does not expand internationally and begin to globalize.

Citing a study by consultancy IDC in 2009, Acti said Chile's global services industry generates more than US$850mn a year, creating over 20,000 jobs.