IT&E asks for 100 percent tax break on new call center

IT&E’s PTI Services Inc. has formally filed its qualifying certificate application to the Commonwealth Development Authority seeking the maximum tax breaks and abatement for its $3.6 million additional investment for the island’s first call center business.

In a notice filed by CDA, it was declared that the call center intends to invest the approximate amount to expand and operate its center located in Susupe.

PTI Services applied for 100 percent abatement on business gross revenue tax, excise tax, capital gains tax, and seeking a 100 percent rebate on corporate income tax—all for a 25-year period.

Under the Investment Act of 2000, the CNMI government through CDA can provide companies up to 100 percent tax benefits to encourage new businesses.

Currently, the call center firm has 40 seats and it will increase up to 300 seats—a factor that would result to additional jobs, more investment and revenue for the government.

Early this month, Gov. Benigno R. Fitial expressed willingness to approve the tax break request of the company.

In 2006, a call center business was proposed then later cancelled by investors citing the impact of federalization and minimum wage hike in the CNMI. The supposed first call center facility was proposed by Eric Van Der Maas and his co-partner based in Los Angeles.

Saipan Tribune learned that from having only about 10 personnel when the call center opened in May 2008, the IT&T’s call center now has 57 telephone operators, supervisors, and other personnel taking in 6,000 to 13,000 calls daily.

Meantime, the 40-seat call center provides 411 directory assistance services mainly to Hawaiian Telcom customers 24 hours a day, and is now exploring partnerships with other U.S.-based investors to outsource similar services.

The Qualifying Certificate Program, which was established on Dec. 1, 2000, grants tax incentives to investors to put up new investments in the CNMI or assist existing investors to expand their operations.

Since its inception, the QC program has attracted 11 companies, produced immediate benefits of $28.12 million from capital expenditures, and generated a total of $100.59 million in taxes, local purchases, utility payments, and other community contributions over the seven years the program has been in place.