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US' 5% tax on remittances expected to shave off $1.7 bn inflow into India
The New Indian Express Kannur
|May 17, 2025
US President Donald Trump's proposed 5% tax on remittances will have a significant effect on India as the country is one of the biggest beneficiaries of remittances from the US.
Rough estimates suggest the 5% tax would deprive the country of $1.6-1.7 billion in foreign exchange every year.
The proposed bill -- The One Big Beautiful Bill -- includes a 5% tax on international money transfers made by non-citizens and this means, non-immigrant visa holders (like H-1B visas) who send money to India will have to pay a remittance tax of 5%.
According to the Reserve Bank of India (RBI), with 28% of total inward remittances coming from the US, the North American country is the biggest contributor of money sent by NRIs to India.
This story is from the May 17, 2025 edition of The New Indian Express Kannur.
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