U.S. slices planned remittance tax to 3.5% from 5%

U.S. slices planned remittance tax to 3.5% from 5%

The recent move by the U.S. House to reduce the proposed excise tax on remittances from 5% to 3.5% offers limited relief to millions of Indians living in the U.S. While the change softens the blow, it still risks disrupting a vital financial lifeline.

With remittances from the U.S. forming 27.7% of India’s inflows, such taxation could deter transfers, spark short-term spikes, and push some into informal channels. The Indian government’s delay in assessing the impact is concerning.

Moreover, President Trump’s renewed threats against Apple’s manufacturing in India complicate the economic landscape. As global geopolitics intrude on personal finance and trade, proactive diplomacy and economic preparedness are essential.



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