NRI organizations asked to protest 12.36% service tax on remittances

June 30, 2012 by  
Filed under newsletter-india

IKFS President Dr. Ghalib Al-Mashoor

India, June 28, 2012: Indo-Kuwait Friendship Society (IKFS), an organization of NRIs in Kuwait has registered strongly its protest on India’s plan to charge 12.36% on all foreign remittances to India.

IKFS President Dr. Ghalib Al-Mashoor said that there is no justifications to levy this tax on the money of the hard working Indians working all over the world. This tax will hurt labourers or semi-skilled workers who unable to find jobs at home go overseas to provide for their families.

In a statement issued by IKFS it pointed out that no other country tax the remittances sent home.

Recently MP Shashi Tharoor has also written a letter to the Prime Minister asking for this proposed tax be put on hold.

Non-resident Indians numbering about 7 million transfer more than US $64.0 Billion annually to dependents back home.

According to estimates states such as Kerala, Tamil Nadu, and Punjab depend heavily on international remittances. The share of NRI remittance in the State’s Net Domestic Product is about 31% in Kerala, 13% in Punjab and 7% in Tamil Nadu. The remittances provide social security to the dependent families, help them meet basic necessities of life, education and improve their standard of living.

IKFS called all NRI organizations to protest against this service tax.

– tcn

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