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In Honduras, the recently introduced 1% tax on remittances sent from the United States is reducing the real income of thousands of families. According to the Central Bank of Honduras, these financial flows represent more than 25% of the country’s GDP, making them a vital source of household support. The measure has sparked concern among communities that rely heavily on remittances to cover basic needs, as the levy adds pressure to already strained household budgets.

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00:00Now in Honduras, the new 1% tax on remittances sent from the United States reduces the real income of
00:06thousands of families.
00:07In an economy where three, these flows represent more than 25% of GDP, according to the Central Bank of
00:14Honduras.
00:15Let's take a closer look at the details.
00:22The 1% tax on remittances sent from the United States directly impacts Honduras, where these transfers exceeded $872.9
00:31million in January alone.
00:33According to the Central Bank of Honduras, the levy makes it more expensive to send money that supports more than
00:3960% of households living in poverty.
00:44This is a clear reflection of the type of foreign police Honduras will have over the next four years.
00:50Simple, accepting the imposition by the United States regarding remittances, regarding that type of income generated by Honduras living abroad.
00:59Which is so important for maintaining the flow of consumption and to a certain extent, investment and savings within the
01:06country and ensure that Honduras' economic dynamics remain stable.
01:13Economic experts estimate that, as a result of the cancellation of temporary protected status, Honduras could lose up to $170
01:22million in remittances,
01:24considering that around 40% of Hondurans protected under this mechanism regularly send money to the country, among other labor
01:31and migration-related factors.
01:36It is estimated that only about 40% of the people protected under TPS are sending remittances.
01:45They all have already broken ties with the family they had here in Honduras.
01:51Their parents have passed away, they have brought their children over, they got married in the United States, and they
02:01are no longer sending remittances.
02:03So, it is estimated that the national economic cost stopped saving about $150 to $170 million per year.
02:16Of course, this is significant because it is direct support to cover the basic needs of recipients.
02:23We are talking about food, health care, and children's education.
02:27In addition, another important portion of these funds help sustain the country's savings.
02:35Y además, otra parte importante de los mismos vienen a sustentar el ahorro del país.
02:4398.46% of remittances come from the United States and represent more than 25% of Honduras' GDP.
02:51That is, more than $12.2 billion annually.
02:551% may seem marginal, but in macroeconomic terms, it means millions less circulating in consumption, trade, and the payment
03:03of basic services.
03:04This is el basicoso.
03:07Remittances have become a leaf line that provides macroeconomic stability to the country, but we cannot continue depending on them.
03:14This situation forces governments to create the necessary conditions within the country's well-paid jobs, employment opportunities where Hondurans can
03:23drive in order to prevent immigration.
03:25That is the ideal scenario, isn't it?
03:28To gradually replace those remittances with dollars generated from goods and services that we, ourselves, can bring to export.
03:38A this scenario, added to this scenario is the uncertainty surrounding the reactivation of the process to cancel temporary protected
03:46status, which could affect the job stability of thousands of remittance senders.
03:51According to the experts consulted, Honduras could stop receiving around $170 million per year.
03:58For Telesur, from Tegucigal, Honduras, Karim Duarte.
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