Minister for Non-Resident Keralites Affairs K C Joseph, who has already written to Union Finance Minister Arun Jaitley, urging withdrawal of the decision, said this tax would be ultimately passed on to Non-Resident Keralites (NRKs) by the financial institutions dealing with their funds.
"Financial institutions, including money exchange firms, already charge a seven percent commission on remittances. Now, the Central Board of Excise and Customs has issued a circular to realise 12.36 percent tax on the commission,” he said.
"They would ultimately pass this on to the account holders, which would mean double taxation," Joseph told reporters here.
He said nearly 90 percent of Keralites working in the Gulf are engaged in low-end jobs and the money sent by them is the sole source of support for their families.
A similar proposal was made when the UPA was in power but it was withdrawn after Kerala Chief Minister Oommen Chandy intervened in the matter, Joseph said.
As per the figures of the State Level Banking Committee, non-resident Keralites sent a whopping Rs 95,000 crore last fiscal through banks and other institutions.

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