Mexico remittances dip 5% in May as US mulls tax

MEXICO CITY, July 1 (Reuters) - Remittances sent to Mexico dropped 4.6% in May compared to a year earlier, according to central bank data published on Tuesday, as the United States prepares to implement a tax on the transfers sent by workers to their families back home.

The figure for May hit some $5.36 billion. Mexico, the world's second-largest recipient of remittances after India, receives remittances chiefly from workers in the United States, where the Senate recently softened plans to tax these payments, drafting plans for a 1% tax on transfers paid for in cash.