Indian expats in the UAE are in a race against time to appeal for amendments to the higher tax rule for Non-Resident Indians (NRIs) ahead of the Union Budget 2025. Community groups and expat organizations are mobilizing efforts to lobby the Indian government, sending emails to Finance Minister Nirmala Sitharaman and engaging Members of Parliament (MPs) to advocate for tax relief. The proposed changes, which could significantly impact NRIs’ financial obligations, have sparked widespread concern among the Indian diaspora, prompting urgent calls for intervention.
New in recent times is the rule regarding higher taxation; it burdened NRIs considerably, particularly if they have an address, in a tax-free country, as in the UAE. Currently, many ex-pats hold that there has been little thinking into what goes on among this community – most especially DTAAs agreements available in all locations. This increase in tax liabilities will discourage investments in India and may strain the financial stability of families who are depending on remittances. The community leaders are now working very hard to make sure their voices are heard before the budget is finalized.
Expat groups have been approaching the Finance Ministry and appealing that they have also been contributing towards India’s economy in terms of remittances, investments, and philanthropic activities. They are asking the government to review tax provisions and come up with something that will be relieving for the diaspora. They also want clearer guidelines and exemptions to ease the compliance burden on NRIs. The involvement of MPs has added weight to their campaign, and a number of them have promised to raise the issue in Parliament.
As the days tick down to Union Budget 2025, the Indians based in the UAE are still holding onto hope that their work will result in something positive. The outcome of this campaign can bring about change and may be influential for NRI communities for long years thereafter, thereby strengthening ties to India in their finances. In the meantime, the bottom line is to address the concerns of the diaspora, which would strengthen the bond between India and its global citizens.
