Should Rachel Reeves consider a tax on overseas remittances?

[vladi]

The chancellor is exploring new opportunities (  and rightly so) for raising tax revenue in an endeavour to tackle the debt burden facing the nation. One think tank has floated the possibility of taxing  remittances  sent overseas by UK residents using a mix of formal channels  such as banks Western Union, MoneyGram, Wise and WorldRemit.  The proliferation of Western Union agencies has become notable in recent years.

It is estimated that  around £28.5 billion was remitted to such countries as India, Pakistan, Nigeria and  countries in the Caribbean.

Imposing such a tax could reduce capital outflows and result in greater investment here in the UK.

The USA is introducing a tax at the rate of 1% effective 1/1/2026. Canada, Oman and Saudi Arabia are expected to follow suit.

[alice]

That wouldn’t work people sending money have already paid tax on it

[vladi]

3 minutes ago, alice said:

That wouldn’t work people sending money have already paid tax on it

That assumption is not always valid

[alice]

Well, tighten up black market not punish those who  are already paying