A new tax plan for remittances from the US has sparked some concern in the diaspora because of far-reaching implications for home countries like Ghana.

The US legislature's Ways and Means Committee has unveiled a sweeping tax plan which includes a 5% tax on remittance payments.

The tax is expected to disproportionately affect immigrants like Ghanaians living in the US because the bill makes exceptions for most remittance transfers made by US citizens.

AFP reported that the tax would cover more than 40 million people, including green card holders and nonimmigrant visa holders, such as people on H-1B, H-2A and H-2B visas.

In 2023 alone, remittance flows from the U.S. to countries around the world reached $93 billion, according to World Bank figures.

Ghana received over $4.6 billion in total remittances that year, with the US being one of the top sending countries.

Though still under review, the bill’s inclusion of the remittance tax provision is likely to spark pushback from both Democrats and immigrant communities, making its future uncertain.

US President Donald Trump also recently announced that he is finalising a plan to stop remittances” sent by people in the US illegally.

There are concerns that taxing certain remittances could negatively affect communities in countries like Ghana that rely on them, could eventually burden Americans and even cause more immigration to the US.

Ghanaians living in the US have been dealing with a new immigration rule introduced by the Trump administration.

Since April 11, all foreign nationals are required to register and always carry proof of their legal status.

Everyone considered a foreign national must have proof of their legal status, such as a Green Card, visa documents, or the I-94 entry record, with them at all times.

Trump notably promised to crack down on immigration during his presidential campaign.

All foreign nationals present in the US longer than 30 days were to have registered under the Alien Registration Act by April 11, according to a notice from the US Department of Homeland Security.

reported in February that a Church of Pentecost branch in the US was abandoned by some of its Ghanaian members who feared being deported amid a crackdown by the Trump administration.

The district pastor of the Church of Pentecost USA Inc., North Columbus, Samuel Koomson, said that around half of his congregation was now staying home.

Aside from religious activities, the fear of deportation has also spread to educational spaces, with many concerned by the ongoing crackdown on immigrants.

Сheck out news that is picked ➡️ click on “Recommended for you” and enjoy!

Source: YEN.com.gh