By Aaron Humes: Starting January 1, a new one percent federal excise tax on certain cash-based remittances leaving the United States will increase costs for immigrants who send relief to their families back home. This tax, part of President Donald Trump’s “One Big Beautiful Bill,” signed on July 4, was originally scheduled to be five percent.
It will be levied on cash-based transfers, money orders, and cashier’s checks sent by immigrants, green card holders, and visa holders, but not applied to bank transfers and debit and credit card transactions.
According to the Inter-American Development Bank, Belize received approximately US$173 million in remittances up until November of this year, with 84 percent of that amount coming from the United States. In 2024, per the Central Bank, the figure was US$152 million, accounting for almost five percent of Belize’s gross domestic product (GDP). If the tax had already been in place, the U.S. would have collected about US$3.2 million from Belize for 2024 and 2025.
For many families, this money is vital for covering essential expenses such as food, rent, school fees, and medical costs. Some argue that a deduction of one percent may seem minimal on an individual transaction, but when considering the vast sums transferred annually, the cumulative effect is poised to ripple throughout the economy. For instance, a US$500 transfer (BZ$1,000) would cost an additional US$10 (BZ$20) in addition to established transfer fees.
Remittance service providers such as MoneyGram and Western Union will be required to provide information about senders to the U.S. government, and members of the Belize diaspora are calling for greater education including about alternatives such as bank transfers (which incur their own fees).
The post U.S. to tax remittances sent by immigrants starting New Year’s Day appeared first on Belize News and Opinion on www.breakingbelizenews.com.
By Aaron Humes: Starting January 1, a new one percent federal excise tax on certain cash-based remittances leaving the United States will increase costs for immigrants who send relief to their families back home. This tax, part of President Donald Trump’s “One Big Beautiful Bill,” signed on July 4, was originally scheduled to be five
The post U.S. to tax remittances sent by immigrants starting New Year’s Day appeared first on Belize News and Opinion on www.breakingbelizenews.com.
