In a move that could significantly affect millions of Non-Resident Indians (NRIs), the US has introduced a new bill in its legislature proposing a 5% tax on money transfers sent abroad.
The proposed tax would apply to all individuals who are not born in the United States — including H-1B visa holders and Green Card holders. The bill does not set any minimum limit, meaning that even the smallest amount sent overseas would be subject to this tax.
If passed into law, this bill is expected to impact nearly 4.5 million Indian immigrants working in the US who regularly send money back to their families in India.
The move has sparked concern among immigrant communities, who view it as an added financial burden on those supporting families abroad. Several diaspora organizations are calling for reconsideration, arguing that the bill unfairly targets foreign workers.
All eyes are now on the US Congress as discussions on the bill continue.
