Indian immigrants in the U.S. are cautiously relieved as the Senate scales back a controversial 5% remittance tax to 1%, offering respite to workers sending money home.
Indian nationals in the U.S. who send money home are cautiously celebrating as Senate Republicans reduced a proposed remittance tax from 5% to 1%. The revision, part of the GOP’s “Big Beautiful Bill,” limits the tax to certain cash transfers and excludes bank transactions—bringing relief to many high-earning Indian tech workers.
“Their families back here in India are already good financially… the people who are much relieved are the guys who eventually wanted to come back sometime,” said Alok Dubey, CEO of PrimeWealth.
The U.S. sent $80 billion in remittances in 2022, with India the largest recipient. While the cut pleases immigrants, the Immigration Accountability Project criticized the rollback, calling it a missed opportunity for revenue.
“Disappointed… this is a potential stream of revenue… Americans would view it as reasonable,” said IAJ’s Chris Chmielenski.
The bill now returns to the House for reconciliation before heading to President Trump’s desk.