Letter of the Day | Jamaica must act to protect diaspora and preserve remittance flow

THE EDITOR, Madam:

As a member of the Jamaican diaspora, I am writing with deep concern regarding the announcement of imposition of a one per cent excise tax on remittances by the United States administration. This policy amounts to an economic assault on immigrant communities and disproportionately harms Jamaican families who rely on these transfers.

For decades, remittances have served as the financial backbone of the Jamaican economy. These are not luxuries. They are vital supports that sustain lives and nurture opportunity. This new tax represents more than a monetary burden; it reflects a troubling hostility toward immigrant contributions and Jamaica must respond with urgency and resolve.

While the diaspora remains steadfast in support for families and communities, the Government of Jamaica must take bold and decisive action to mitigate the impact of this tax. The following may be considered:

– Mandate a reduction in remittance transfer fees by financial institutions operating in Jamaica to neutralise or offset this additional cost, to protect the real value of remittances received by Jamaican households.

– Strengthen transparency and regulatory oversight to ensure financial institutions are not profiting unfairly from diaspora hardship under the guise of processing costs.

– Establish a public-private task force to explore digital, community-based, and fintech-driven solutions that reduce costs and expand access to remittance services, particularly for rural and underserved populations.

It is estimated that remittances to Jamaica totalled approximately US$3.37 billion in 2023. This figure represents a significant share of national income, contributing between 17 per cent and 20 per cent of the country’s GDP, with the vast majority of these funds originating from Jamaicans in the United States.

Beyond their social value, remittances are a vital foreign exchange source, helping stabilise the Jamaican dollar and reduce the country’s reliance on external debt. They also play a central role in Jamaica’s balance of payments, often offsetting trade deficits and providing liquidity for essential imports such as food, fuel, and medicine. In short, remittances are not just private transfers but pillars of national economic stability.

Remittances are not charity, but a patriotic investment in our homeland. We should not be penalised for sending help home.

Jamaica’s financial institutions and elected leaders must rise to meet this challenge. Protecting remittances is not just sound economics — it is an act of national loyalty and moral leadership.

KARREN DUNKLEY