India could consider countermeasures under the principle of reciprocity and tax outward remittances by US companies and foreign institutional investors that invest in Indian stock markets.
Since October 2023, foreign transactions above Rs 7 lakh under Liberalised Remittance Scheme have attracted a 20% tax collected at source. It’s sending a signal to big spenders abroad: we are watching you.
The high transaction cost on remittances amounts to an additional tax on cross-border movement of incomes. For 2023, roughly $41 billion was spent on just transaction costs.
India is expected to get $125 billion in 2023, up from 2022’s $111 billion. This inflow has caused South Asia’s share as a whole to rise, says the World Bank.
This is the first such for the South Asian nation that is the world's biggest recipient of remittances. Transfer of funds will now be possible using just mobile phones.
The IFSC regulator has approved banking regulations for IBUs. It has allowed resident Indians, with a net worth of not less than $1 million, to invest in IBUs.
As migrants workers from Asia's developing nations see opportunity drying up in job market, they are sending money home in advance of their own return.
Non-resident Pakistanis will be allowed to open digital accounts to allow diaspora to invest in stock markets, buy govt debt and conduct basic banking.
Remittances, or the money overseas citizens send back to their home country, are expected to contract 20% in 2020 on account of Covid-19, according to a World Bank report.
International remittances make up 7 per cent of Bangladesh’s GDP, but Covid-19 has adversely impacted its migrants working in countries with strict lockdowns.
China flaunted military might & modernisation as it displayed stealth drones, anti-satellite system & cyber warfare contingent during parade to mark victory over Japan in WWII.
From Munir’s point of view, a few bumps here and there is par for the course. He isn’t going to drive his dumper truck to its doom. He wants to use it as a weapon.
Yes, if USA applies remittance tax then India is justified to tax outward remittances by US companies and foreign institutional investors that invest in Indian stock markets. However the real solution is to make India a developed nation fast. The other measures India can take is to work for an alternative world currency like a BRICS currency so that the power of dollar is reduced. The dollar as world reserve currency is giving undue advantages to USA and under Trump presidency it is heavily misused.
Yes, if USA applies remittance tax then India is justified to tax outward remittances by US companies and foreign institutional investors that invest in Indian stock markets. However the real solution is to make India a developed nation fast. The other measures India can take is to work for an alternative world currency like a BRICS currency so that the power of dollar is reduced. The dollar as world reserve currency is giving undue advantages to USA and under Trump presidency it is heavily misused.