In this study, we investigated the etching characteristics of ITO thin films and the effects of inert gases added to $Cl_2/BCl_3$ inductivity coupled plasma. The maximum etch rate of ITO thin film was 130.0 nm/min upon the addition of Ar (6 sccm) to the $Cl_2/BCl_3$ (4:16 sccm) plasma, which was higher than that with He or $N_2$ added to the plasma. The ion bombardment by $Ar^+$ sputtering was due to the relatively low volatility of the by-products formed in the $Cl_2/BCl_3$ (4:16 sccm) plasma. The surface of the etched ITO thin film was characterized by x-ray photoelectron spectroscopy (XPS) and atomic force microscopy (AFM). From the XPS results, it is concluded that the proper addition of Ar and He to the $Cl_2/BCl_3$ plasma removes carbon and by-products from the surface of the etched ITO thin film.