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GOPIO opposes proposed 5% remittance tax in U.S.
The provision is included in the Republican-led “One Big Beautiful Bill Act,” currently under consideration in the U.S. Congress
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Malvika Choudhary - Wed, 21, May 2025
- 16:43 EDT
- 11
GOPIO logo / GOPIO
The Global Organization of People of Indian Origin (GOPIO) voiced strong opposition to a proposed 5 percent tax on funds remitted by immigrants to their home countries.
“Any additional tax imposed on mere transfers of said after-tax Income would be termed as double taxation and should be considered as unfair and selective,” the organization said in a statement.
Also Read: India leads remittance inflows at $129 bn in 2024
The remittance tax proposal is included in the Republican-led “One Big Beautiful Bill Act,” currently under consideration in the U.S. Congress. The bill, spanning over 1,100 pages, includes proposals for permanent individual and estate tax cuts, increased defense spending, and stricter immigration enforcement.
GOPIO argued that immigrants already pay federal, state, and local taxes on income reported through W-2, 1099, or similar forms, and the funds being remitted are from these taxed earnings. “Immigrant workers are already presumably paying their fair share of federal, state and additional taxes on said earnings,” the organization stated.
The organization warned that the proposed tax would disproportionately affect low-income immigrant families, especially those who send money to financially dependent relatives in their countries of origin.
“GOPIO believes that if a study were to be conducted, it would show that such additional tax on remittances would primarily affect low-income families disproportionately because most remittances are to families who depend on the immigrant for financial support,” Prakash Shah, president of GOPIO said.
In addition to wage earners, the tax would impact international students and exchange visa holders (in F, M, J, and P categories), many of whom remit money to repay education loans taken in their home countries. These individuals often lack access to U.S.-based financial aid and rely solely on their taxed income to meet obligations.
GOPIO also raised concerns that the remittance tax could drive immigrants toward unregulated financial channels, including the use of cryptocurrency. “The new 5 percent tax on remittances could have unintended consequences wherein immigrants could resort to the use of illegal channels via cryptocurrency held in digital wallets to remit the funds overseas,” it said in a statement.
Calling the measure a threat to transparency and financial security, GOPIO urged lawmakers to remove the remittance provision from the final legislation. It also called on Indian-American and broader immigrant communities to contact their congressional representatives and register opposition.
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