US Targets India’s Remittance Lifeline—BRICS Feels the Squeeze

The US just fired a shot across India’s bow—hitting where it stings most: remittance taxes. As BRICS nations scramble to de-dollarize, Washington’s move exposes the fragile underbelly of cross-border cash flows.

No mercy for the middleman. With India’s $100B+ remittance economy in the crosshairs, the rules of global money wars just got rewritten. Guess ’neutrality’ has a price tag after all.

Funny how ’financial innovation’ always seems to benefit those holding the levers. Maybe next they’ll tax sunlight.

5% Remittance Tax Could Soon Hit BRICS Member India

Trump has publicly called the legislationandis also ensuring that Republicans pass the legislation. The 5% tax on remittances to BRICS country India will potentially fund billions to the US Treasury. The latest report highlights that Indian workers send close to $83 billion a year in remittances back to their families in India.

Therefore, a 5% tax could add close to $4.15 billion to the US Treasury if the new bill is passed. Currently, BRICS member India is the world’s top recipient of remittances. If $100,000 is sent back home, then the IRS gets $5,000 through the remittance tax. Until 2025, remittance was never taxed in the US, making it a first-of-its-kind policy.

The House Republicans aim to pass the bill on Memorial Day, May 26, 2025. Lawmakers hope to get the law signed and roll into action by July 4, Independence Day. Every financial institution and money transfer service will be tasked to collect a 5% remittance tax for money going to BRICS member India. The rule will have no limit, and every transfer, including both big and small, will be subject to taxes.