Tax incentive for return migration?

MIGRANTS from developing nations could be tempted to return home if exempted from paying taxes on their savings and given opportunities to build on their foreign experience, an intergovernmental thinktank said in a major report on Friday. The recommendations, which come amid the largest movement of refugees and migrants since World War II, are among proposals put forward by the Organisation for Economic Co-operation and Development (OECD) to encourage the return of migrants from poor countries. The number of international migrants has doubled in the past quarter century, reaching 240 million, the 35-nation economic policy body said in its report launched in New York. As world leaders grapple with stemming the migrant flow, the study by the OECD’s Development Centre urged poor countries to invest in policies that can lure back citizens and convince them to stay. “Return migration is a largely underexploited resource,” the report said. “With the right policies in place, return migrants can invest financial capital in business start-ups and self-employment and have the potential to transfer the skills and knowledge acquired abroad.” The OECD researchers found that attracting back migrants who had gained experience or education abroad was a top economic priority for governments in the 10 countries examined. – Reuters