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Indians in Saudi Arabia to be hit by “dependent tax”

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Indians in Saudi Arabia to be hit by “dependent tax”

[vc_row][vc_column][vc_column_text]Falling economy forces Riyadh to impose new taxes

The Saudi government, faced with growing economic crisis due to low oil prices, war against Yemen, providing Army for protecting Bahrain government from opposition onslaught and branding itself as “leader of Muslim world”, has started tough measures against expat workers in the Kingdom.

From July 1, every expat living with his family in that country will have to pay 100 riyals (approximately ₹1,723) for each member as “dependent fee” every month. The fee amount will gradually increase by 100 riyals each year till 2020, meaning that an employee will then have to shell out 400 Saudi Riyals for each dependent every month. An employee living with wife and two children, in 2020, will have to pay 1200 riyals (Approximately ₹21,000 with present exchange rates) every month as dependent fee.

Saudi Arabia gives family visa to anyone with a salary of 5000 riyals (approximately ₹90,000) and above. The average employee would hardly be able to afford keeping his family in the Kingdom.

There are nearly 41 lakh Indians in Saudi Arabia, the largest expat group in that country. This is also the largest number of Indians living in a single country abroad. Ten lakh of them are from Andhra Pradesh and Telangana.

An Indian expat living in Dammam recently said that some families have made plans to return to Hyderabad as they cannot afford to stay there any longer.

According to migrant rights activist Bheem Reddy Mandha, several families have already returned to India in the past four months. He was quoted saying “the men have become forced bachelors”.

Reports indicate that life in Saudi Arabia is becoming tougher. From July 1, the day when GST will be implemented in India, prices of beverages will increase by 100 percent. Heavy Gunah (sin) tax on tobacco products has also been recently implemented.

In recent months a large number of foreign workers were laid off because of the fall in crude oil prices. Thousands of workers from India, Pakistan, Bangladesh and Philippines faced hunger due to non-payment of salaries. Indians employed in construction, Information Technology, medical infrastructure and other sectors are believed to be rethinking their plans on staying back in that country.

To a query on the probable impact on Indian expats a senior official in the Ministry of External Affairs said nothing could be said as yet. But it will affect all expats, he added.

Ironically, the hit to Indians comes after Prime Minister Narendra Modi’s April visit to Saudi Arabia where King Salman conferred him country’s highest civilian award – the King Abdulaziz Sash. During the visit Modi also addressed Indian workers and heard their grievances.

The new taxes were announced weeks after US President Donald Trump visited Saudi Arabia signing bilateral deals worth tens of billions of dollars. A Saudi citizen, most probably living outside, criticized “Trillions for Trump and taxes for citizens”.

Saudi activist Essam al-Zamel wrote on his twitter account “after the selective tax, which come into effect in a few days, whoever smokes two packs of cigarettes a day will pay around 1500 riyals a month, equivalent to a car payment”.[/vc_column_text][/vc_column][/vc_row]

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US lawmakers move resolution to roll back Trump’s 50% tariffs on Indian imports

Three US lawmakers have moved a resolution to end Trump’s emergency declaration that imposed 50% tariffs on Indian goods, calling the move illegal and harmful to trade ties.

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Three members of the US House of Representatives have introduced a resolution seeking to end former President Donald Trump’s national emergency declaration that led to steep tariffs on imports from India. The lawmakers termed the duties illegal and warned that they have hurt American consumers, workers and long-standing India-US economic ties.

The resolution has been moved by Representatives Deborah Ross, Marc Veasey and Raja Krishnamoorthi. It aims to terminate the emergency powers used to impose import duties that cumulatively raised tariffs on several Indian-origin goods to 50 per cent.

What the resolution seeks to change

According to details shared by media, the proposal specifically seeks to rescind an additional 25 per cent “secondary” tariff imposed on August 27, 2025. This was levied over and above earlier reciprocal tariffs, taking the total duty to 50 per cent under the International Emergency Economic Powers Act.

The House move follows a separate bipartisan effort in the US Senate that targeted similar tariffs imposed on Brazil, signalling growing resistance in Congress to the use of emergency powers for trade actions.

Lawmakers flag impact on US economy and consumers

Congresswoman Deborah Ross highlighted the deep economic links between India and her home state of North Carolina, noting that Indian companies have invested over a billion dollars there, creating thousands of jobs in sectors such as technology and life sciences. She also pointed out that manufacturers from the state export hundreds of millions of dollars’ worth of goods to India each year.

Congressman Marc Veasey said the tariffs amount to a tax on American households already facing high costs, stressing that India remains an important cultural, economic and strategic partner for the United States.

Indian-American Congressman Raja Krishnamoorthi described the duties as counterproductive, saying they disrupt supply chains, harm American workers and push up prices for consumers. He added that rolling back the tariffs would help strengthen economic and security cooperation between the two countries.

Background of the tariff hike

Earlier in August 2025, the Trump administration imposed a 25 per cent tariff on Indian goods, which came into effect from August 1. This was followed days later by another 25 per cent increase, citing India’s continued purchase of Russian oil. The combined duties were justified by the administration as a measure linked to Moscow’s war efforts in Ukraine.

Wider push against unilateral trade actions

The latest resolution is part of a broader push by congressional Democrats to challenge unilateral trade measures and reassert Congress’ constitutional authority over trade policy. In October, the same lawmakers, along with several other members of Congress, had urged the President to reverse the tariff decisions and work towards repairing strained bilateral relations with India.

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Mexico imposes 50% tariff on Indian imports, auto exports maybe hit

Mexico’s approval of 50% import duties on select goods from India and other Asian countries threatens nearly $1 billion worth of Indian exports, especially in the automobile sector.

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Mexico has cleared steep import duties of up to 50% on several goods from Asian nations, a move that places nearly $1 billion worth of Indian exports at risk from January 1, 2026. The decision targets countries that do not have a trade agreement with Mexico, including India, South Korea, China, Thailand and Indonesia.

Mexico moves to shield domestic industry

The new duties—covering items such as automobiles, auto parts, textiles, plastics, steel, footwear, furniture, toys, appliances, leather goods, and cosmetics—are aimed at strengthening local manufacturing. Mexico says the tariff push is designed to reduce dependence on Asian imports and support domestic producers.

China stands to face the highest impact, with Mexican imports from the country touching $130 billion in 2024. According to Mexico, the revised tax structure is also expected to generate $3.8 billion in additional revenue.

Mexican President Claudia Sheinbaum has backed the decision, framing it as an investment in domestic employment creation. Analysts, however, believe the move may also align with the United States’ expectations ahead of the upcoming United States–Mexico–Canada (USMCA) review.

Impact on India’s automobile exports

The sharpest blow for India will fall on its automobile sector. Imports of passenger cars into Mexico will now face 50% duty instead of the earlier 20%, threatening the competitiveness of major exporters including Volkswagen, Hyundai, Nissan and Maruti Suzuki.

Industry estimates cited in a report say around $1 billion worth of Indian automobile shipments could be affected. Ahead of the tariff announcement, an industry body had urged the Indian government to engage with Mexican authorities to safeguard market access.

Mexico is currently India’s third-largest car export destination, trailing only South Africa and Saudi Arabia.

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Luthra brothers detained in Thailand after Goa nightclub fire tragedy

Delhi restaurateurs Saurabh and Gaurav Luthra, accused in the Goa nightclub fire that killed 25 people, have been detained in Thailand as India moves to secure their deportation.

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Delhi-based restaurateurs Saurabh and Gaurav Luthra, wanted in connection with the Goa nightclub fire that claimed 25 lives, have been detained in Thailand. Images circulating online show the brothers with their hands tied, holding their passports, as they stand beside Thai police officials.

Brothers held in Phuket as India seeks deportation

The Luthra brothers, who run the Romeo Lane chain across multiple cities and countries, left for Phuket just hours after a massive blaze gutted their ‘Birch by Romeo Lane’ nightclub in north Goa’s Arpora. They are facing charges including culpable homicide not amounting to murder and negligence. Indian agencies are now preparing to push for their deportation so they can be tried in Goa.

Deadly fire triggered by flammable decor and safety lapses

The late-night blaze erupted during a musical event attended by around 100 people, most of them tourists. The use of electric firecrackers during a performance is suspected to have triggered the fire. The venue’s heavy use of flammable décor and absence of functional fire extinguishers or alarms turned it into a death trap.

A narrow access road further delayed fire engines, forcing responders to park nearly 400 metres away, significantly hindering rescue operations. By the time the blaze was doused, 25 people — including five tourists and 20 staff members — had died, most due to toxic smoke inhalation in the basement.

Police pursuit and legal battle

Following the incident, four staff members were arrested and a search began for the Luthras. Investigators from Goa and Delhi discovered the brothers had booked their tickets soon after the fire and left the country within hours. Their business partner, Ajay Gupta, has already been arrested in Delhi.

The brothers have moved a Delhi court seeking anticipatory bail, arguing they were licensees, not owners, of the building. They claimed they were not present at the nightclub when the fire occurred and said their travel to Thailand was for a business meeting, not to evade investigation. Their plea seeks four weeks of protection from arrest upon their return to India.

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