The proposal for a remittance tax by Trump's administration has generated a mix of skepticism and concern within the Indian diaspora. Many are worried about the logistical hurdles and negative consequences for financial flows to India. There is significant criticism over the fairness of taxing non-citizen remittances, without tax benefits, which could further strain geopolitical relations. However, some believe the bill is unlikely to pass Congress and highlight possible workarounds, which slightly alleviates the overall negative sentiment.

Trump's Administration

Indian Diaspora

Will it impact indian residents who invest in US using international brokers like Charles scwab, IBKR?

I couldn't find anything, can anyone confirm?

UnicornWithTits

In this report by *The Hindustan Times*, Ajay Srivastava of the Global Trade Research Initiative (GTRI) is quoted as warning that US President Donald Trump’s proposed 5% tax on international remittances by non-citizens, part of a legislative package called “The One Big Beautiful Bill”, could severely impact Indian households, which received $120 billion in remittances in 2023–24, nearly 28% of it from the US. The tax, to be collected by banks and remittance services and remitted quarterly to the US Treasury, excludes American citizens but targets green card holders and temporary visa workers.

GTRI projects a 10–15% drop in remittance flows, potentially slashing India’s inflows by $12–18 billion annually, pressuring the rupee, prompting Reserve Bank intervention, and hurting consumption in remittance-dependent states like Kerala, Uttar Pradesh, and Bihar. The report also flags broader global consequences for countries like El Salvador and Mexico, underscoring the measure’s far-reaching financial disruption.

Though this measure is framed as a general crackdown, the sheer scale of India’s exposure should make the country feel less like one among many and more like the elephant in the room. That such a sweeping proposal emerged as Commerce Minister Piyush Goyal is in the US on a firefighting visit is no coincidence, it suggests a relationship under visible strain. Whether it stems from India’s perceived rigidity in trade negotiations, the slow pace of bilateral progress, or simply Washington’s impatience with New Delhi’s economic posture, the message is unmistakable: frustration is being telegraphed through fiscal pressure. In diplomacy, taxes can speak louder than words.

See also:

The New Indian Express: [India tops list of countries receiving remittances in 2023 at $125 billion](https://www.newindianexpress.com/nation/2023/Dec/19/india-tops-list-of-countries-receiving-remittances-in-2023-at-125-billion-2643017.html) (19 December 2023)

telephonecompany

H1B employees are the modern day slaves. No citizenship for their kids, no tax benefits even though they collect Medicare and Social security tax. Now a hafta to transfer their own money to their homes.

jammu

It’s not passing Congress, folks

This is not one of those “executive order” things, like tariffs. (Tariffs were already delegated to the president by a PREVIOUS law from Congress)

Few_Alternative6323

People have been avoiding these kind of rules for decades via our desi Havalla system. No one is gonna get affected by this and people have their ways of masking the taxation route.

So I don’t think these kinds of bills will hurt Indian homes at all since we are known for our Jugaad 💀☠️.

Edit: Hawala is illegal and I DO NOT CONDONE IT, though this doesn’t change the fact that not just Indians but many nationalities use a hawala like system on a daily basis with no repercussions.

RegularSituation6011

Ok it is a bill. It is not a law yet. And if it does become it in theory can be challenged in court . Let us wait

ImpressiveNeat9039

Will it be only for people who live their or also for people who live in india and invest there? Because it will make almost no sense to invest in the US if it is applied.

Dante__fTw

Its a totally genius move. Increases tax revenue while not burdening the citizens. Other countries ought to try things like this.

AkaiAshu

Sounds about right . India also taxes lrs .

bombaytrader

TheLastLostOnes

Watsonwes

doolpicate

His team seems to be bad at dividing by two....

Other than that, I feel this would long term benefit the Indian consumer.

I just shudder at the thought of how the market will open today 🤣

PayResponsible4458

mredd99

ShanayStark7

are they stupid lol? Not against applying tariffs but the 52% is not tariff we apply, its essentially the ratio of US Imports (from India) to US Exports to India i.e for every 2$ US Exports to India, it only imports 1$.

vkasha

[deleted]

I think this benefits India in the long term. As India has comparatively lower tariffs than China and Vietnam, they might be able to undercut their existing market. Also, this opens up the market a little bit more. 
Yes, he is a clown but Indian govt needs to start thinking as a businessman to utilise this scenario.

Livid-Needleworker25

rawlaw8

Acceptable_Log_7438

Most of the numbers are made up.

Also tariffs depends on demand and supply. For tariffs to be reciprocal the demand and supply should match ( in terms of imports and exports).

zynga2200

Some countries are charging 90%+ to usa. LOL.

DogsRDBestest

I am just taking relief with this un-educated delulu tariff embargo
1. Higher tariffs on bully china (CCP) than India.
2. India to get a jolt so it starts working toward making value based companies instead of ultra-fast delivery giant companies, which even if doesn’t exist wouldn’t matter to ppl. Example Zomato, swiggy. We need companies like TikTok, SpaceX, Pfizer etc

ShoutOutLoudForRicky

Where is the RSS and BJP supporters of Trump?  Why don’t you come tell us how this is a good thing?  On top of Indian immigrants being deported and racially profiled.  Come tell us how Trump so good for India?

CHiggins1235

The BJP is more concerned and celebrating the waqf bill. But there's no discussion on tariffs, inflation, employment and other matters concerning the people. Least they could do is to tell parliament how prepared are they to meet the trump action.

Anything to escape responsibility.

Affectionate_Rich750

Snapshot of _Visas not an issue in UK trade talks, insists India's top diplomat in London amid Trump tariff chaos_ :

An archived version can be found [here](https://archive.is/?run=1&amp;url=https://www.standard.co.uk/news/politics/uk-work-visas-india-trade-deal-donald-trump-tariffs-b1222742.html)  or [here.](https://archive.ph/?run=1&amp;url=https://www.standard.co.uk/news/politics/uk-work-visas-india-trade-deal-donald-trump-tariffs-b1222742.html)         


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Any deal which allows for the mass migration of foreign workers into the UK without the benefits that EU membership once afforded us would be political suicide for Keir Starmer.

Immigration has been a gargantuan sticking point for the British public (big reason we voted for Brexit and Boris Johnson.) Starmer would basically be handing the next election over to Farage.

Clbull

I should hope so, including people in a trade deal is problematic.

Saltypeon

So after the Boriswave we brace for an immigration Kiernami.

GrayAceGoose

They're not an issue because we have already made concessions let's be honest

ACE--OF--HZ

Its the inter-company transfers, which would be fine for most countries for us to agree too. However, Indian companies have a history of gaming this.

WITCH companies like Tata Consultancy Services have committed fraud in the US by giving entry level people managerial titles in India so they can get an L1 visa to the US.

Pikaea

The cs subs in Reddit are full of bootcampers, new grads and people who have no clue about the difference between IT and CS. It is best to ignore them. Getting job as new grad was always hard in the US.

Ecstatic_Pie9615

I have noticed the same. three years ago when markets were humming nobody talked about H1Bs in those groups. Now that job market is shambles, these people don't have skills to get a job and want to scape goat someone. So they are blaming us. IMO don't give a shit about their opinion, improve your skills so that even in the case if you have to go back to India and work.

_Name_Changed_

H1B seems to be a lightning rod for the right-wing to get roiled over. Folks hesitant to express 'personal' views in a corporate setting come to these subs to vent it out. 

Not much we can do, other than to ride it out.

desi_guy11

The wage suppression narrative and corresponding racist undertones have been a constant thing in Canadian forums, the only difference is it’s not limited to tech, more focused on lower wage retail, operations jobs (probably because Indians are practically running every large orgs tech here and Canada really doesn’t have a choice there). In my experience, it’s typically a small minority who creates this noise who have too much time at hand. Over a period of time, you become immune to it and start ignoring such outlier opinions

Fancy-Efficiency9646

If someone takes your jobs, then you will react like them. Today companies want us, tomorrow it's Africa and others.

kingsofkings91

Many indian firms and consultancy have exploited the h1b program

chipmux

In the end, Indian skilled talent is too valuable for companies to let go. Nothing's going to change, we can be relaxed.

srinidhikarthikbs

You said it. They’re only now seeing the competitiveness of it all and are not ready for it.

SeparateBad8311

It is understandable.  If you are an American and you see your children struggling without a job and you see some foreigner come and take scarce high paying jobs, it will burn you up.  The globalized labor market stuff is all theoretical and abstract.

pravchaw

That’s 8.33 billion that could go to the CAD economy on top of that the snow washing aka money laundering occurring.

RootEscalation

They're here for the $$ and will probably go back when they've had their fill. We're becoming like the Middle Eastern countries of Dubai, Saudi Arabia, etc. where people are there for their jobs, take the money and return to their places.  These people have no loyalty to Canada!! Why are we letting them in?!?

HotJelly8662

What do you think has driven economic reform in Saudi Arabia

sexylegs0123456789

So many people I know state that they send money back home to support their families.

Threeboys0810

Isn’t this money already taxed? I mean you can spend anywhere you like.

EntertainmentDry3324

India brought in remittance taxes long back. But Canada doesn’t?

kingcobra0411

Those earning in Canada already pay taxes there and those money they sent to is to their family back home. Canadians should stop being so greedy and ask their government for stricter immigration laws and building some housing.


(like Indian government recently extended their housing scheme and would build 30 million houses for the poor, so at least Canadian government could make 200k houses no?).

Mahameghabahana

Otherwise-unknown-

Just spitting out pure hatred out of context. The money sent out has already been taxed, and you want them to be double taxed to fill the lazy ones pocket. Majority of them are supporting their elderly parents unlike here where the majority don't give a damn about their own and let them rot in care homes.

ieatkundi

Stupid... This money has been taxed already.. Its their money to spend as they like... Can spend it in a casino for all i care.... Still no word on the recovery of the elites money from Panama and Swiss accounts!! When can we lock them up?

Why stop at remittance tax. I suggest Govt should take control of all bank accounts and give people a chart of how they must spend their after tax money. Any deviation from the approved chart should be subject to penalty and jail term.

IndBeak

Ok that’s a little crazy , do we also need to tax money we spend in USA? Also dude I may send money back cause my grandma is in an old age home? 

Are you taxing me now on top of income tax, and foreign exchange ? Also if you do that you will also introduce a tax where any money coming will be taxed (which over a certain % it is taxes)

Megs1205

Money leaving the country , not to mention most of our new found "citizens " aren't investing in this country long term. This is the problem with globalization and pretending it's sustainable and not a cancer on a once beautiful country such as this one.

Embarrassed_Emu420

There is a reason Canada will never impose taxes on remittance or outflow of capital.

Because most frauds and financial criminals that come to Canada as refugees, students, and immigrants bring massive amount of hidden income with them. Have you ever wondered that why the housing market got so screwed if most Indian migrants/students are low-skilled workers doing minimum wage/low wage jobs? 

It is the money stolen from Asian countries that used buy houses in Canada. Canadian govt is well aware of that. Imposing tax on remittance will met with similar reactions by other countries and it will lower the capital inflow to Canada. You choose to take criminal money, now you pay the price. 

Sorry for Canadian people, your govt sucks.

iknowverylittle619

This comes across as a hate post. People can spend their money the way they want as long as it’s taxed. They can even burn it for all I care. However I feel that money coming into Canada needs more scrutiny. I know some Chinese and Indians brining in crazy amounts of money into the country when they get their PR. Canada lets them bring in limitless amounts of cash when they come in tax free and they don’t really care where that money is coming from. This I feel has led to money laundering which is mostly hidden in Vancouver and Toronto condos, artificially inflating the real estate market

Weekly-Acanthaceae79

You’ll call me a racist but if mores studies are done on this subject, Indian community will top the list.

KaleidoscopeLower451

This post cries, "iNdiA = bAd."

Firstly, this money has already been taxed. 

Secondly, "We need a remittance tax on Indian money transfers," why only India? Why not all the countries?

Thirdly, As of 2023, "there were 319,130 international students from India enrolled in Canadian institutions." All of them bring money from India, 1 Indian student spends approx $15,000 per year on tuition (I am not even counting the $10,000 or $20,000 GIC that they bring, as well as the money spent on flights that DIRECTLY contributes to canadian economy). Tuition alone brings \~ $4.786 billion, GICs another $3 billion to $ 6 billion. Not to mention the initial money they bring to pay rent deposits, buy groceries, buy a car, winter clothes etc. Indian International Students alone easily bring around $10 billion every year, and you are crying about 20% of $8 billion ($1.6 billion).   
  
This is not only racist but also as stupid as it can get. Please do some math, grow some neurons, and maybe find someone else to blame for your sorry life.

it-is-my-life

why not tax the rich? taxing this money would hurt some of the poorest people in the world.

If you have earned your money legally and paid taxes on it, you can spend it any which way you want. I don't want the government to dictate how I should spend my money. If I want to blow it up on hookers while on holiday in Europe, I have every right to do so. Let's not digress from the issue here. What you are asking for is more government control over your money. Be careful what you wish for.

What you should ask for is the government pull up its socks and take tougher measures against money laundering, especially in the real estate market. Against foreign buyers. Against people doing cash jobs and small businesses allowing it - both worker and employer benefit from this. Against the small businesses that are selling LMIAs for hundreds of thousands of tax-free money. Against the big businesses that are hiring workers from overseas.  Against slumlords and others who are not declaring their rental incomes thus evading taxes.

RuinEnvironmental394

Canadians are getting labor in exchange for a currency which is created out of thin air.

stopping it would be stupid, not to mention, this is already taxed money.

Y'all are really not bright, are you?

If you stop remittances, people will try to buy assets inside canada (they will not spend it as you expect) and your houses will become more costly.

Remittances are good outcome for citizens because inflation is exported elsewhere.

Beneficial-Rub-8947

We just have to make sure that this money is taxed before spending. Once taxed it's their money and they can do whatever with it.

sudiptaarkadas

Remittance on all transfers. Crazy we allow all this money to flow out of the country

IndependenceGood1835

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When you import mostly from Asia. Most of the newcomer came from the middle east or previously working there.

railfe

How does the outflow compare to inflow to Canada from these countries?

UntamedF0x

These people have liabilities (e.g. student loan) and responsibilities (elderly parents, spouse, children). I guess that is why they send that much money. The other alternative for them then seems to have their dependents move to Canada with them as residents. The latter may strain the social infrastructure more, I fear.

lerandomanon

And CBPS wants me to pay tax on my $800 i spent abroad, foh

WiseEyedea

Specifying this to India reeks of brigading…

ThaDude8

Put a fee on it, not a tax! 
Use the fee to hire tons of people(Canadian citizens) to make sure money is clean, legitimately earned and taxed.
Easy Peasy

Gold_Expression_3388

Eliminate government welfare and let people send and spend their money how they see fit. No tax from them, no tax to them. It's simple.

0-15

In the fourth quarter of  2024, Canadians spent 11 billion overseas with about 6billion in US alone. So, we are sending more than 40 billion annually overseas. By this logic, the overseas spend should be taxed first. It’s much more significant than any remittances anywhere.

Source: https://www150.statcan.gc.ca/n1/daily-quotidien/240524/dq240524c-eng.htm

This-Leek-9906

Cuz this wasn’t already taxed? This is hilarious next you will say the gov should tax the bank transfer I did to my kid who is visiting another country. Get a grip so blind with hate you would jump on anything.

TruthHurtsBitchez

Once all income taxes are paid (which most wealthy people don’t), people should be free to do whatever they want with their earnings. 

Another stupid post. The money is already taxed. Whatever they do with it is up to them

JuveDragon

🤣😂🤣😂. This sub can't really take itself serious at this point

Alarming-Wrongdoer-3

General-Pea2742

I just can't with you guys. Like why do you even think this way? First off, what's wrong with remittance? I'm actually surprised only 20% goes to India, but it could be 100%, it doesn't matter. 

Sometimes I see posts on this sub with like 500 upvotes. The posts are of no substance, like this post... Canada sends $8 billion in remittances a year. Who cares, what does this have to do with housing. Do remittances affect housing. No. Omg, 20% is going to India... And then the comments. They make zero sense. It's just one 100% incorrect comment after another. And you all just spend your time in year, living in a false reality. God, what a dumb take.

Mulliganzebra

Look at you folks eyeing other peoples money like true liberals. Bet you have a plan to spend it too for them. You propose a new tax for money that is taxed on employers, income, sales, carbon and GST? What do you want to name this tax? What you gonna do about it tax?

onboundhomeward

So remittance to other countries are allowed without any implications smh

The OP clearly has a bigoted opinion. There are other countries in the list that also remit but OP wants to tax just the 'Indian Money Transfers'.

OP ignores the fact that Federal and Provincial government benefits hugely from the influx of international students paying 3-4x tuition. 

Lastly, all developed countries in the world have immigrants that are remitting to their respective country of origin. Most of the immigrants are doing it through a legal framework set up by the respective governments but still OP feels threatened.

jestinjoshi

But they would have already paid income tax? Why tax it again?

TJOakridge

The last thing Canada needs is another bullshit tax.

Odd-Elderberry-6137

I wouldn’t tax remittance, they’ve already paid their taxes and the remittance fee.

First_Cherry_popped

You sound like a communist. I don’t like immigrants, but everyone should be free to spend their after-tax dollars however they see fit. Yes, that includes the Indians.

Here’s something from StatCan

“During 2022, Canadian residents spent … $32.1 billion while travelling abroad …”

What was your measly $8 billion number again? What should we do with all the Canadians spending money on traveling abroad, which sounds like a 4x bigger “problem” since we are losing all that money from the domestic economy?

Jeez it’s like every dimwit here has jumped on the bandwagon of how do I apply a lens of “hmm this sounds bad and must be connected to India / Indian immigrants” to every random stat they can find.

I joined this sub because I am genuinely concerned about the lack of housing affordability and rising cost of living in Canada, but half of the posts here make me feel like this is mostly a hive mind for people to rush and half-intelligently conclude ‘this must be the fault of Indians’. Almost as if they are leading their hypothesis with a foregone conclusion.

BackgroundBrief3268

A proposed tax on money transfers by non-US citizens could heavily impact the Indian diaspora, which contributes significantly to India's remittance inflow.

Trump's Remittance Tax Impact on Indian Diaspora

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