*Mexico’s President Claudia Sheinbaum has celebrated the reduction of a proposed US tax on remittances in the latest draft of President Donald Trump’s One Big Beautiful Bill Act as “very important”. Sheinbaum was referring to the latest draft of the bill in the senate, which sees the proposed tax reduced to 1%, down from the 3.5% proposed in a previous draft and the original proposal of 5%. Sheinbaum also noted that the 1% would only apply to remittances sent in cash and that electronic money transfers, which she said made up more than 90% of remittances sent to Mexico, would not be subject to any tax. Sheinbaum said that her government would announce a programme later this week to reimburse that 1% for Mexicans who do send remittances in cash, through the debit card of the welfare financing agency, Financiera para el Bienestar (Finabien). Sheinbaum said the reduction in the tax proposal was achieved thanks to Mexicans, especially those with dual nationality, who sent letters to their senators and to Mexican senators who went to visit their counterparts in the US. The proposal to tax remittances has caused much concern in Mexico, where remittances account for nearly 4% of GDP. If approved in the US senate, the bill will return to the House of Representatives for a final vote before being sent to Trump to be signed into law.
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