(Image source from: Gulf countries austerity measures on migrant’s income to hit Indians})

As the low prices of oil hit the Gulf Cooperation Council (GCC) countries, they are gearing up to take austerity measures and proposing to impose tax on migrant’s income. The Indians are hit hardly due to the move.

Indians, living in Gulf countries are deporting their families back home, while, others have decided to go without the families. Recently, Oman has released an austerity-driven budget. The Monthly expenses of the migrants are expected to be affected due to the move.

The economy of the Gulf countries is almost fully dependent on income from crude. As the fuel prices decreased, countries are facing job cuts and there is no increments. Several projects have been cancelled around the region. GCC countries have increased the charges of basic utilities like water and electricity. GCC countries had imposed service tax on migrants, six months before.

KV Shamsudeen of the Pravasi Bandhu Welfare Trust,  said that, "A few companies have cancelled their projects. The only silver lining is Expo 2020 to be hosted in Dubai,  where industry hopes to sign major projects. Dubai, Qatar and Kuwait have projects worth $100 billion to complete.”  “One of the main reasons families are returning to India is high rents and difficulty in getting admission for the children in schools. Though Dubai has eight new schools it is next to impossible to get a seat and the only alternative is to move back to India,” he added.

Nandini