18 July 2025

With the US Senate having agreed to a 1% remittance tax in the Big Beautiful Bill Act, regional countries are counting the cost of its implementation with questions on oversight and mechanics. The Guatemala Central Bank, Banguat, calculates an impact of US$200-225m, Honduras has estimated the tax will cost the country US$100m. In May, 92% of Salvadoran remittances came from the US amounting to US$3.58bn, an increase of 16.8% year-on-year. The Centre for Global Development suggests that remittances will fall by 1.6% with Mexico, India and Central America the most affected.

Source: Central America Briefing | Vol 13, Issue 14