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GTRI: Trump administration is planning to impose tax on money sent from US, may affect the income of Indian families
GTRI: America is planning to impose 5% tax on money sent by foreign nationals to their countries. This may affect the income of Indian families. GTRI said that if this law is made, India may lose billions of dollars every year.
The US government of Donald Trump plans to introduce a 5% duty on funds sent by foreign nationals to their nations. Indians have raised concerns in regard to it as it can impact Indian families' incomes. This was said by GTRI on Sunday.
A bill was introduced in the House of Representatives on May 12. It's dubbed as 'The One Big Beautiful Bill'. It contains a clause to introduce a 5% tax on funds transferred by non-residents to their homelands. This clause will extend to non-US citizens, i.e., green card holders or those who have temporary working visas (e.g., those with H-1B or H-2A visas). This tax will not extend to US citizens.
The Global Trade Research Initiative (GTRI) said that this proposed tax is causing concern in India because if it becomes law, India could lose billions of dollars in currency from the US every year. It said, this is an important matter for India, as the country receives remittances of $ 120 billion in 2023-24, of which about 28 percent came from the US.
