LatinNews Daily - 15 May 2025

*Mexico’s President Claudia Sheinbaum has rejected a proposal put forward in the US congress which would impose a 5% excise tax on remittance transfers which would be paid for by the sender. Sheinbaum noted that a cross-party Mexican senate statement had described the tax as “unjust” and “discriminatory”. The proposal, which creates an exception for remittance transfers sent by verified US citizens or US nationals by way of qualified remittance transfer providers, was included in ‘The One, Big, Beautiful Bill’, a legislative initiative presented in the House of Representatives’ Ways and Means committee on 12 May by its chairman, Jason Smith (R-MO). If approved, the move would significantly impact the Mexican economy where remittances account for approaching 4% of Mexico’s GDP. Mexican migrants in the US sent a total of US$64.75bn in remittances to Mexico in 2024, up 2.3% on 2023. Both Mexico’s federal senate and lower chamber have rejected the proposal as an “unjust double taxation” on migrant workers in the US. A statement by Mexico’s senate pointed out that 80% of migrants’ earnings “remain in the US economy, improving the well-being of those who live there.” Yesterday Adán Augusto López, the leader of the ruling Movimiento Regeneración Nacional (Morena) in the senate, proposed sending a group of senators from different parties to the US to set out Mexico’s position in relation to the proposed tax.

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