OTTAWA, ON (November 21, 2018) – Proposals to support Canada’s Information and Communications Technology (ICT) sector in today’s Federal Fall Economic Update will support investments in ICTs and will increase Canada’s competitiveness, according to national industry advocate, the Information Technology Association of Canada (ITAC).
The government has responded to the Canadian ICT industry’s calls to accelerate capital cost allowances (CCA) to support investments in technology. Accelerating the CCA rate for ICTs will entice businesses to: make investments leading to improvements in businesses processes; maximize the usage of existing assets; integrate more efficiently in global supply-chains; enhance customer experience; and explore new business models and technologies.
Increasing CCA rates will also support expedited deployment of 5G networks. Leveraging Canada’s strengths in a digital world requires the right tax environment to spur ICT investments, whether it’s telecommunications firms investing in networks and 5G, or cities investing in the Internet of Things (IoT) and Smart Cities applications. Without the right tax environment to spur ICT investments, be it from corporations or small and medium-sized enterprises (SMEs), Canada will continue to lag in productivity behind the U.S. and will slip in overall competitiveness. 5G will provide the backbone for transmitting the vast amounts of data our Smart Cities and the IoT will create.
ITAC has advocated that it is crucial that the Canadian technology sector have access to international markets, as well as the ability to attract investment into Canada from abroad. Canada needs to diversify its export markets. The Government has launched an export diversification strategy to increase Canada’s exports by 50 per cent by 2025 and commits increased funding for industry supports such as the Trade Commissioners Services (TCS) in specific areas such as digital, e-commerce and intellectual property, as well as an expansion of the Canadian Technology Accelerator Program to enable SMEs to leverage our new trade deals.
ITAC has been calling on Government to address Canada’s regulatory environment in all sectors and has been advocating for updates to the rules governing technology to position Canada at the fore of the technology renaissance and support a data driven digital economy.
Through the Fall Economic Update, the Federal Government has set a course to partner with the ICT industry to ensure that the current regulatory environments do not limit Canadians’ capacity to innovate in practical applications of technologies, by creating an External Advisory Committee on Regulatory Competitiveness, and a Centre for Regulatory Innovation to act as a focal point for businesses to engage with Government in in ’Regulatory Sandboxes‘ to support innovation.
ITAC is looking forward to its continued work with government officials and industry leaders to develop measures that will serve the interests of Canadians and Canadian businesses to fully and safely compete in the global digital economy.
“Canada’s government and ICT industry must work together to bring cohesion and scale to Canada’s digital economy. It’s about growth, innovation and competitive advantage – and ultimately, future-proofing the country for changing technology needs. Encouraging all sectors to make investments in ICTs via updates to the tax policy will enable Canada to more effectively compete in the global digital market. Ensuring that we have flexible regulatory frameworks that can respond to new innovations will spur the growth of our most creative SMEs.” Denise Shortt president and CEO, Information Technology Association of Canada.
About Information Technology Association of Canada (ITAC)
As Canada’s national ICT business association, the Information Technology Association of Canada (ITAC) champions the development of a robust and sustainable digital economy in Canada. A vital connection between business and government, we provide our members with the advocacy, networking and professional development services that help them to thrive nationally and compete globally. A prominent advocate for the expansion of Canada’s innovative capacity, ITAC encourages technology adoption to capitalize on productivity and performance opportunities across all sectors. A member-driven not-for-profit, ITAC has served as the authoritative national voice of the $170 billion ICT industry for over 60 years. More than 36,000 Canadian ICT firms create and supply goods and services that contribute to a more productive, competitive, and innovative society. The ICT sector generates over one million jobs directly and indirectly and invests $4.9 billion annually in R&D, more than any other private sector performer. Visit www.itac.ca for more information.
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Janet Gibson Eichner