German government’s proposal for tax breaks for foreigners causes uproar

The proposed plan is aimed at dealing with major shortage in skilled labour caused by an aging population.

Transcript

00:00From paramedics to workers in construction and restaurants, Germany is in search of foreigners

00:10to deal with a major labor shortage. The government is now suggesting tax breaks

00:14from 10 to 30 percent in the first three years, with certain limits to attract skilled workers

00:21from abroad. The government has especially focused on getting

00:25people from India. Rohan Shinde and his friends from the country

00:29say that decreasing taxes would be appealing. Most probably, they would try to migrate

00:35over here. So this would motivate and as well increase

00:40the morale to come over here. The government's proposal has led to criticism

00:44from many quarters. A large union and the leading opposition party,

00:48the center-right Christian Democratic Union, are opposing the plans.

00:53The CDU says that taxes for all workers should be reduced.

00:56An MP on the parliamentary economic affairs committee says the proposal could lead to

01:01polarization in society, dividing domestic and foreign workers.

01:05She says this could feed into extremism. The society is under pressure because of a

01:10lot of migration we have got in Germany. And now this would be a mistake, a wrong signal

01:19to send the signal to domestic workers. They pay a lot of taxes that people coming

01:25from outside, they have to pay 30 percent less for the same work.

01:32Several other European countries offer foreigners tax incentives, with a common focus on in-demand

01:37jobs. Portugal said in July it would reintroduce a

01:40program that decreased taxes for foreigners working in some sought-after professions,

01:46such as professors. Sweden gives tax breaks to people with high

01:50incomes or who are considered experts in their fields.

01:54Denmark is also trying to attract high earners. They, along with researchers, get a tax rate

02:00of about 33 percent, while citizens could pay more than 50 percent.

02:05Rohan says more money in his pocket will let him invest in Germany and live out some of

02:11his dreams. I can invest on the assets like getting an

02:15apartment, buying an apartment, buying a car for myself, as well as taking my parents to

02:22travel all over the world. Germany is aiming to attract 400,000 skilled

02:27workers to the country each year to deal with the labor shortage.