Trump Cuts Remittance Tax: The Donald Trump government has reduced the tax on remittances sent by foreigners working and doing business in the United States to their countries . Although it was previously announced that a 5% tax would be levied, it has been reduced to 3.5%. The latest decision will provide relief to Indians working in the United States. The Trump administration has brought a bill called ‘Excise Tax on Remittance Transfers’ to levy a tax on money sent from the United States to other countries.

The Republicans, who described it as a beautiful bill, said that a 5 percent tax would be levied. However, due to criticism and opposition, it was finally reduced to 3.5 percent. Now, if you send Rs 1 lakh from the United States, you will have to pay a tax of Rs 3,500.

Banks and money transfer companies that transfer money collect this tax and pay it to the government. This tax bill has been drafted under the name ‘One Big Beautiful Act’. The US House of Representatives has approved it. There were 215 votes in favor and 214 votes against. This means that the bill was passed with a slim majority. There are about 4.46 lakh Indians in the US. Many of them send money to their family members, parents and relatives in India. This tax reduction will benefit them somewhat. It will come into effect from January 1, 2026.

Trump Cuts Remittance Tax

Since Donald Trump won the US election last year and took office for the second time, difficulties have begun for foreigners and immigrants there. Trump is suffocating immigrants with strict restrictions. Even those with green cards are no longer protected. Immigration rules have become more complicated. Illegal immigrants are being identified and deported from America. The Trump government is not leaving students alone either . Student visas are being canceled and deported from America for minor reasons. Many are spending sleepless nights due to this.

The US has made some changes to its new tax system. The standard deduction and child tax credit have been increased to $2,500 by 2028. Previously, there was no tax on remittances from people living in the US to their home countries. But the Trump administration is now imposing a tax. This will generate a large amount of revenue for the US government treasury. Trump hopes to use this money for border security projects.

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