The newly introduced 1% tax on outbound remittances under the One Big Beautiful Bill Act (OBBBA) by the United States has raised concerns about its potential impact on global remittance flows, particularly for countries like India, which are major recipients of remittances
Key Features of the US Remittance Tax:
Exemptions and Mitigation:
Impact on India’s Remittance Economy:
India is the largest recipient of remittances globally, and a major portion of these come from the United States.
Distributional and Timing Effects:
Broader Trends in Remittance Flows:
India’s Response: Mitigating the Impact
Conclusion:
While the 1% tax on outbound remittances from the US under the One Big Beautiful Bill Act may slightly increase costs for Indian remitters, the overall long-term impact on India’s remittance inflows is expected to be marginal. The exemption for digital channels and smaller transactions will protect most remitters from this tax. Moreover, India's ongoing efforts to enhance payment infrastructure and encourage digital remittance methods will help offset the negative effects of this tax
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Every aspirant is unique and the mentoring is customised according to the strengths and weaknesses of the aspirant.
In every Lecture. Director Sir will provide conceptual understanding with around 800 Mindmaps.
We provide you the best and Comprehensive content which comes directly or indirectly in UPSC Exam.