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Tax Incentives
CIPS calls for renewed ICT strategy for Canada
TORONTO - This past budget provided several measures that should help get Canada's ICT industry back on track. Provisions such as the two-year 100 per cent capital cost allowance provide an immediate boost to business through increased productivity through the acquisition of new technology. The budget also provides increased funding for Information Technology Health related projects.
"What this amounts to are several good initiatives that should spur short term growth in Canada and hopefully nurture long-term recovery in Canada's tech sector," says Greg Lane, I.S.P., ITCP, "The results are beginning to show. Prime Minister Harper has recently said the world economy is beginning to show signs of recovery - the Bank of Canada recently declared the recession over. However, we continue to shed jobs on a monthly basis with the manufacturing sector continuing to be particularly hard-hit."
- "At CIPS we believe in order to ensure the long-term viability of
Canada's information technology industry, we need a concerted effort
from government, academia and industry." In order to stimulate the
sector and address the lack of qualified IT professionals, CIPS
advocates recruiting more professionals from overseas, and
repatriating Canadians who have left.
Potential measures could include:
- The elimination of income tax for IT professionals in Canada. This
would provide an incentive for students to enter the field and help
repatriate Canadians currently working abroad.
- Eliminate the tax on all technology sold in Canada. This would
provide an immediate as well as long term boost to manufacturers and
retailers of hardware and software.
- Stimulate more students to participate in ICT related fields of
study. We advocate a relief mechanism, either financial or otherwise,
that acts as a multiplier for students entering studies in ICT.
- Associations and companies offering more ICT bursaries and
scholarships and promoting to the public via a government website.
We see ICT as a vehicle to help Canada respond to the economic challenges we are currently facing. When we invest in 21st century jobs we lay the foundation for new companies that will help continue Canada's prominence on the world stage. These future companies and industry leaders will help Canada weather any economic storm.
CIPS is the professional association for Information Technology (IT) practitioners in Canada. Founded in 1958, CIPS is a non-profit organization, and a co-founder of the United Nations-founded IFIP (International Federation for Information Processing) that represents IT professionals on issues affecting the IT industry and profession. CIPS is a dynamic organization focused on IT excellence through its work on public policy, setting standards within the profession and providing IT support to its community. CIPS offers the only professional IT designation, I.S.P., that is recognized by law in Canada. For more information, visit: www.cips.ca.
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