US move raises discrimination concerns for overseas Indians

Changing dynamics

- MONIKA YADAV, SHIVANI SHINDE & RUCHIKA CHITRAVANSHI

A proposed 5 per cent "excise tax" on remittance transfers by non-citizens in the United States (US) has caused concern about discrimination in the Indian diaspora, and among policy-makers and tax experts.

Part of US President Donald Trump's "The One, Big, Beautiful Bill," the measure, if passed, could significantly affect Indian professionals who send money from the US to support families in India or invest in the country.

The Bill proposes the levy on all cross-border remittances made by non-citizens, including H-1B, L-1, and F-1 visa holders, as well as green card holders. US citizens and nationals are exempt from this.

The provision requires that the tax be collected by remittance-transfer providers, who are responsible for depositing it every quarter with the treasury secretary.