Dhaka, May 21 -- A proposed US tax on outward remittances spearheaded by President Donald Trump is raising alarm among Bangladeshi economists, who warn it could severely disrupt dollar inflows and push migrant workers toward illegal money transfer channels like hundi, undermining Bangladesh's foreign currency reserves.

The legislation, titled "The One, Big Beautiful Bill", was endorsed on Sunday by the US House Budget Committee. A full vote in the House of Representatives is expected as early as next week.

If passed, the law would impose a 5 percent tax on all international money transfers sent from the US by non-citizens, regardless of amount, with no exemption threshold.

This includes immigrants on H-1B, F-1 student visas, and even g...