New Delhi, May 17 -- The Trump administration is planning to impose a 5 percent tax on outward remittances. In President Donald Trump's big priority bill, there is a proposal for a 5 percent excise tax on remittance transfers that would cover millions of people, including those holding green cards and H1B visas.

Remittances are typically transfers from a well-meaning individual or family member to another individual or household. As per the World Bank, the movement of funds from the country of work back to a home country is known as remittances.

A provision proposed under the bill called "The One, Big, Beautiful Bill" states that, "This provision imposes a five percent excise tax on remittance transfers which will be paid for by the sen...