SAT Desk
A controversial bill recently passed by the US House Budget Committee threatens to upend the flow of remittances from the United States, one of Bangladesh’s largest single remittance sources, putting at risk billions of dollars that support the country’s economy.
Titled the “One Big Beautiful Bill Act”, the legislation, championed by President Donald Trump, the bill passed by the US House of Representatives on Thursday includes a 3.5% tax on remittance transfers made by anyone who is not a US citizen or national.
Initially, the tax had been expected to be levied at a rate of 5%.
It will now go to the Senate, which will leave its own mark on the bill.
However, it has already sparked concern among economists, development experts, and the Bangladeshi diaspora.
Remittance flow at risk According to data from Bangladesh Bank, remittance inflows from the US totalled $4.27 billion between July and April of the current fiscal year, over Tk52,000 crore, making the US one of the single largest sources of remittance for Bangladesh.
A 3.5% tax on that amount would mean a potential loss of around $149.45 million (Tk1,820 crore), a blow to the country’s foreign exchange reserves. The World Bank ranked Bangladesh as the sixth-largest remittance-receiving country in the world in 2024, with total inflows reaching $26.6 billion, of which nearly 18% came from the US. A blow to migrant workers and families The proposed tax would apply to all non-citizens, including green card holders and H-1B visa workers.
