Polish Economy: Income tax abolished for those younger than 26

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Europe

Since the first of August this year, all those legally working in Poland, and younger than 26 years old, no longer have to pay income tax. It's part of a government initiative, not just to tackle brain drain, but also to attract skilled labor from across the European Union. Aljosa Milenkovic with this report.

These are silicone seals. Every industry is using them. The factory that produces them here on the outskirts of Warsaw says it's always in the market for skilled labor.

A problem that many small companies across the country can relate to.

ALJOSA MILENKOVIC WARSAW "Since Poland became a member of the EU, up to 2 million of its citizens went west, seeking better opportunities. More than half of them ended up in the UK. Now, with Brexit looming, and many Western economies struggling, many have decided to head home."

Jan Wysocki is one of the young engineers in this factory. Many of his friends are abroad.

JAN WYSOCKI ENGINEER, TOPSIL GLOBAL "Some of them want to come back, some of them want to stay, but I think that many of my friends and people who I know actually, they are considering getting back or they are already back."

The government's latest move to abolish income tax for those younger than 26 is an additional incentive to return.

The rapidly-expanding Polish economy needs a more qualified workforce, and companies are now scouring the continent for the right talent.

PIOTR ARAK DIRECTOR OF POLISH ECONOMIC INSTITUTE "And I would say that with the aging population of Poland, we're going to look more forward, and make it possible for those people to come here, in order to sustain the growth rate, that is going to be higher than in the other EU countries."

There are currently about two million Ukrainians filling this void. And the new law says, they too are free from paying income tax, if they are younger than 26.

The government says it wants to keep them in Poland, as well as any other skilled workers who want to make their life here.

JAN WYSOCKI ENGINEER, TOPSIL GLOBAL "They need to live, they need to have a house or flat, they need to have a car, to have money for raising children. So, the more they have, the less they will want to go abroad."

Skeptics say the government is merely trying to win more votes at the upcoming parliamentary elections. Yet, it is hard to find any opposing voices, particularly among those younger than 26. Aljosa Milenkovic, CGTN, Warsaw.