Report Indicates Higher Global Taxes On Information Technologies
Much of having a successful career in information technology has to do with keeping up to date on how the rest of the world is adapting to this ever changing industry. Staying in tune with global IT news is not only necessary to ensure that you're keeping pace with the latest technological developments, but also to stay ahead of the curve by implementing new IT strategies into your workplace. One recent report has specified how certain regulations in countries may slow down the total global economic growth for the IT industry.
Higher IT Taxes In Underdeveloped Countries
The Information Technology and Innovation Foundation recently released its report of how at least 31 countries are currently trying to significantly raise taxes on areas of information technology such as Internet access, smartphone applications and other variations of communication technology. These countries in question are expected to raise their taxes in IT applications and accessories by at least five percent within the next year.
Most of the countries that are proposing these tax increases are underdeveloped or predominantly lower-income. Bangladesh took the No. 1 spot in terms of countries raising their IT communication taxes, with increases of 57.8 percent expected to be placed on basic information and digital technologies. The runners up on the list were Turkey with increases of 26 percent and the Republic of Congo with a budgeted tax spike of 24 percent.
Consequences Of Higher Taxes
One of the main warnings issued through this report was that raising taxes in countries that are not as developed in IT departments will only lead to reduced information and communications technology adoption, which may also vastly damage their total economy. The Information Technology and Innovation Foundation referenced India in relation to how their IT tax increase actually caused economic decay and downfall. For every dollar that's taxed on any communicative technology, India endured a loss of $1.30 because technological productivity continued to decrease. For countries that are raising their IT taxes drastically, this could potentially make most forms of communication devices as well as Internet applications essentially obsolete.
The authors of the report urged the elimination of these incredibly high taxes, not only because they deemed it unfair but because the economic consequences of such actions could be grave. While suppressing access to information and communication technologies is not a prevalent issue in the U.S., it's important for those with careers in information technology to monitor these actions, primarily because they could have an economic impact on global trading and services within the IT industry.
This article is sponsored by Western Governors University, a nonprofit, accredited, online university. WGU offers bachelor's and master's online degree programs in IT. To find out more, please visit www.wgu.edu/wisecareers_IT