PANAJI
With the UK deciding to move out of the EU, it will become particularly difficult for low-skilled and semi-skilled workforce from Goa to gain access to the UK using a Portuguese passport in future. And this in turn is expected to adversely affect the rate of growth in remittances to Goa from Goan expatriates settled in the UK.
Since the UK was part of the EU until recently, a large number of Goans have used the Portuguese passport to travel to the UK in search of work. The formal process of the UK moving out of the EU will begin soon, and is expected to culminate in around two years.
As and when that happens, people will require a permit to visit the UK for work purposes. But getting a work permit for low-skilled and semi-skilled workforce is likely to get cumbersome.
Ashish Prabhu Verlekar, a chartered accountant from Panaji, said, “The flow of remittances will be hit as fewer low-skilled people from Goa will be able to get entry into the UK using a Portuguese passport in future. Till now, a large number of low-skilled people from Goa have been going to the UK thanks to the Portuguese passport. They send money back home also because non-resident (NRI) deposits with banks are tax-free.”
Not only are NRI deposits tax-free, it also offers interest up to 9 per cent per annum, which is much higher than interest rates in the UK. Experts, however, discounted the impact of depreciation in the pound’s value compared to rupee on remittances. The pound had fallen by close to 7 per cent vis-a-vis rupee on Friday.
Sandip Bhandare, chartered accountant and vice-president, Goa Chamber of Commerce and Industry (GCCI), said, “Till yesterday, more people were expecting that the UK would remain in the EU. Since that didn’t happen, the pound fell as a knee-jerk reaction. But, UK’s economy is strong and that will help in stabilising the pound’s value.”
Bhandare concurred with Prabhu Verlekar that remittances to Goa will be affected as low-skilled workforce from Goa will find it difficult to go to the UK through a Portuguese passport. At the moment, it seems that the UK will take two years to move out of the EU.
Therefore, there is a possibility that there may be a spurt in the number of Goans going to the UK through a Portuguese passport to utilise this window, which might help remittances grow as well. Bhandare said, “Yes, this is possible. We will have to see the roadmap of the British government to really comment on it. But, I think there is a possibility that they will put stringent restrictions on migration to check this.”
