BS EDIT: US Remittance Tax: A Blow to Migrants

By Business StandardPublished On May 27, 2025

What’s New

A 3.5% remittance tax will apply to H1B, L1, F1 visa holders and green card holders

It cannot be offset against other taxes

Who It Hits

Indians are among the worst hit—over 5 million hold US visas

India gets $32 bn in remittances from the US

Real Motive?

Claimed goal: reduce dollar outflow

Actual impact: aligns with Trump’s anti-immigrant stance

What the US Risks

Silicon Valley may face talent shortages

Foreign students could look elsewhere

India’s View

India dropped its 6% “Google tax” in goodwill

The new US tax may breach treaty rules

What’s Next

The tax may push migrants to informal channels

Senate expected to pass the Bill by June 2025