View: India’s remittance tax under LRS is a regressive step that threatens liberalisation gains

Recent introduction of a transfer tax on remittances complicates the legacy of liberalisation. The tax, potentially an attempt to conserve forex or curb tax evasion, may inadvertently fuel economic distortions and undermine investor confidence. Critics argue the measure could discourage legal forex transactions and foster a dual exchange rate market. The author calls for reevaluating the tax to sustain confidence in India's liberal economic policies.