HomeAmericasPoliticsTrump’s ‘One Big Beautiful Bill Act’ Could Cost Indians $1.6 Billion In Remittance Tax

Trump’s ‘One Big Beautiful Bill Act’ Could Cost Indians $1.6 Billion In Remittance Tax

Trump’s ‘One Big Beautiful Bill Act’ Could Cost Indians $1.6 Billion In Remittance Tax

Trump’s ‘One Big Beautiful Bill Act’ Could Cost Indians $1.6 Billion In Remittance Tax

India-West News Desk

WASHINGTON, DC — A sweeping new bill proposed by President Donald Trump could sharply increase the cost of sending money back home for millions of Indians living in the United States.

Late on May 18, the House Budget Committee advanced the “One Big Beautiful Bill Act,” a comprehensive 1,116-page legislative package that includes a  provision: a 5% excise tax on all international remittances made by non-U.S. citizens. The tax would apply to individuals on temporary work visas, such as H-1B and L-1 holders, as well as green card holders who have not yet obtained citizenship.

The proposed tax would be deducted at the point of transfer, with no exemption for small amounts — meaning even modest remittances would be affected. Only “verified U.S. senders” — defined as U.S. citizens or nationals — would be exempt.

For the Indian diaspora, the financial impact could be significant. According to a March 2025 Reserve Bank of India (RBI) remittance survey, nearly $32 billion was sent from the United States to India in the 2023–24 fiscal year. Under the proposed tax, this could translate to over $1.6 billion in annual remittance levies borne by the Indian community in America.

The provision states: “This provision imposes a five percent excise tax on remittance transfers which will be paid for by the sender with respect to such transfers.” The law also places the responsibility of collecting and forwarding the tax on remittance service providers, who must remit it quarterly to the U.S. Treasury.

The bill’s scope is not limited to personal remittances — it also covers transfers of investment income and stock option proceeds, channels often used by non-resident Indians to support families or invest in India.

India has been the world’s largest recipient of remittances since 2008, according to the World Bank. In 2024 alone, India received an estimated $129 billion in remittances, accounting for 14% of global flows. The United States is the single largest source, contributing nearly a quarter of those funds.

The Indian population — now estimated at 5.4 million, including 3.3 million Persons of Indian Origin (PIOs) by India’s foreign ministry, is expected to bear a huge share of the burden if the bill becomes law. A majority of this population is still on temporary work visas or permanent residency status and would not qualify for exemption.

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Comments
  • Cheers. Good news. 😎😎

    May 19, 2025
  • The “Big and Beautiful Bill” needs to be amended to increase the Social Security benefits by a minimum of 10%.

    May 19, 2025

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