Outward remittances from India soared to $2.9 billion in May as residents front-loaded their spending to beat the proposed 20 percent levy on overseas spending by the federal government. This was a jump of over 40 percent from the same year-ago period, the Economic Times reported, citing RBI data.
The union finance ministry, however, announced postponing the implementation of the 20 percent to October 1 on outward remittances under the Liberalised Remittances Scheme (LSR).
The RBI data indicated a surge under all major heads of eligible transactions.
But spending on overseas travel, which accounts for over half of LRS, rose 50 percent in May to $1.5 billion.
The government has also put on hold a similar plan to levy 20 percent on residents’ overseas spending on their credit cards.
The proposal came under wide condemnation and sharp criticism, even from a power section of the backers of the ruling BJP.
Follow us on
