Software industry posts 30% rise in revenue

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China's software industry posted revenues of 828.6 billion yuan (123.67 billion U.S. dollars) in the first eight months of 2010, up 29.8 percent from one year earlier, the Ministry of Industry and Information Technology said Saturday.

The growth rate was 8.8 percentage points higher than in the same period last year, according to the statement posted on the ministry's website.

Revenues in August alone hit 105.5 billion yuan, a rise of 34.9 percent year on year.

Posting revenue of 44.9 billion yuan, China's software design and development businesses increased 71.1 percent year on year for the Jan-Aug period, while revenues from information technology consulting services stood at 78 billion yuan, up 40.7 percent.

Further, revenues from software products such as computer software rose 23.8 percent to hit 287.5 billion yuan for the first eight months, accounting for 34.7 percent of total revenues of the industry.

Additionally, software exports grew by 26.4 percent to 14.4 billion U.S. dollars in the first eight months of 2010, while outsourcing services from China's software industry reached 1.75 billion U.S. dollars, jumping 30.4 percent in the same period, according to the statement.

The increase in the industry's revenue was partly due to the government's tax exemption policy.

China said in early August that it would exempt operating taxes on offshore service outsourcing businesses in 21 cities to promote the development of the industry. The 5 percent operating tax exemption is scheduled to run until the end of 2013.

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