Kerala concerned at Centre's decision to tax NRI remittances

The Kerala government expressed concerns over the Centre's decision to impose a 12.36 percent tax on commissions realised by financial institutions on NRI remittances. Non-Resident Keralites Affairs Minister K C Joseph, who has written to Union Finance Minister Arun Jaitley said this tax would ultimately be passed on to NRKs by the financial institutions, who already charge a 7 percent commission on remittances. Joseph said nearly 90 percent of Keralites working in the Gulf are in low-end jobs and money sent by them is the sole source of support for their families. According to State Level Bank Committee figures non-resident Keralites sent Rs.95,000 crore last fiscal through banks and other institutions.