US Edition
Donald Trump: Why a Proposed Remittance Tax by US Could Hurt India
- On May 22, 2024, the US House approved the 'One Big Beautiful Bill,' which includes a proposed 3.5 percent levy on money transfers sent abroad by non-US residents.
- The bill targets non-immigrant visa holders and green card holders, aiming to raise revenue amid President Trump's broader legislative agenda.
- India, the world's largest remittance recipient, received approximately $129 billion in 2024, with about 28% of those funds originating from the US.
- Experts warn the tax could reduce remittance volumes by 10-15%, potentially costing India $12-18 billion annually and impacting household consumption.
- If enacted, the tax may drive migrants to informal transfer methods and risk tightening India’s foreign currency inflows, straining the rupee and economy.
25 Articles
25 Articles
How Trump's 'Big, Beautiful Bill' Impacts Funds Transferred To India
In Donald Trump's "One Big Beautiful Bill," recently pushed through the House of Representatives, lies a provision that could change global remittance flows, and India, the world's leading recipient of remittances, could be impacted the most.
Budget Bill’s Tax on Remittances Is Poorly Designed and Drafted
On May 22, the House of Representatives passed the 1038-page budget reconciliation bill. The bill includes, among other questionable tax and spending policies, a poorly designed and drafted remittances tax. The bill would tax certain remittances sent from the United States (including the US possessions) to foreign countries, starting January 1, 2026. The original bill featured a five percent tax rate, but an amendment lowered the rate to 3.5 per…
Reforma
eldiariodechihuahua.mxSenators who traveled to the United States to avoid a remittance tax met with Ambassador Esteban Moctezuma to fine-tune meeting schedules.
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