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U.S. lawmakers have introduced a bill that would impose a 5% tax on remittances sent abroad, a move that could significantly impact immigrant communities, including Sierra Leoneans who rely on funds from relatives overseas.
The proposed legislation, drafted by House Republicans and released on Monday, targets payments made by foreign residents in the U.S. However, verified U.S. citizens would be exempt and could reclaim the tax as a credit.
“There is hereby imposed on any remittance transfer a tax equal to 5 percent of the amount of such transfer,” the bill states. The sender would be responsible for paying the tax, which must be remitted quarterly to the U.S. Treasury.
Exemptions apply if the sender is a verified U.S. citizen or if the transfer is processed through a qualified provider.
For countries like Sierra Leone, where remittances play a crucial role in the economy, the tax could have far-reaching consequences. In 2023, remittances accounted for 6.8% of Sierra Leone’s GDP—more than many traditional economic sectors.
Many families, particularly in rural areas, depend on money sent from abroad for basic needs. Freetown, the capital of Sierra Leone, is dotted with remittance service providers such as Afro International, Ria Money, MoneyGram, and Western Union.
The proposal follows other recent U.S. immigration and trade policy changes. In January, nearly two million undocumented immigrants were flagged for deportation by U.S. Immigration and Customs Enforcement (ICE). That same month, former President Donald Trump reportedly sought to end birthright citizenship for children of undocumented parents.
Additionally, on March 2, Trump announced a 10% global tariff on all imports, including goods from Sierra Leone.
If passed, the remittance tax could further strain the finances of families in developing nations like Sierra Leone while generating revenue for the U.S. government. The bill’s future now depends on congressional debate and approval.
What about our politicians in Sierra leone 🇸🇱 who stolen our tax payed money, send to there relatives in u s ?
Say it louder. They should pay 20% of all moneys sent to the U.S.
Don’t blame Trump blame our useless politicians and useless tribesmen who support them to destroy this country
Trump knows the interest of the people of America comes first.
For Africa it’s the Interest of America,Russia and China that comes first.
We are still beggars when we have what feed them.
Shalom
Why our president don’t want to stop accepting IMF, MCC, UN FOOD, etc,etc, etc.
Also, our guma valley water if properly functioning will produce 24/7 electricity. We don’t need foreigners to provide light for Sierra Leone. Again APC and SLPP should work together to make this this happen. If supporters of any party burning 🔥 light poles, transformers etc, how the government can function properly? Think about it. Deport all Americans in Sierra Leone. Close the embassy and throw the keys 🔑 in to the sea or river basin. Sierra Leone need to think harder about America, Britain, and France . Ok. God bless Sierra Leone.