Should remittances sent abroad by foreign workers be taxed or restricted to protect the domestic economy?

Context

Remittances—money sent home by workers abroad—are a lifeline for developing economies, often exceeding foreign aid and direct investment combined. Policymakers face a tension: these flows support millions of families and stabilize currencies, yet some argue taxing or restricting them could redirect capital toward domestic investment and reduce dependence on external income. The debate intensifies as remittance volumes hit record highs and countries grapple with balancing worker welfare against economic self-sufficiency.