Fashion & lifestyle

Can the levy really deter low-cost purchases — or does it serve other interests?

Imagine a new charge on every low-cost fashion parcel from abroad: this is the core of the newly approved Extra-EU parcel tax. The measure represents a European policy intervention designed to make disposable clothing bear more of its real cost. At the same time, it protects local markets from what is increasingly described as unfair competition.

According to the European Commission, in 2025 alone around 4.6 billion items were imported into the EU. Each was valued at less than €150 — the equivalent of approximately 12 million parcels per day. This figure has doubled in just two years. Imports stood at 2.3 billion items in 2023 and 1.4 billion in 2022.

Italy, too, is moving in this direction. In fact, the government plans to introduce a €2 tax on each parcel arriving from outside the EU.

But can such a modest levy really curb the tide of low-cost and ultra-fast fashion purchases? And what are the deeper motivations behind this policy shift?

Europe approves extra-EU parcel tax to curb ultra-fast fashion

A €3 tax on all parcels valued below €150 and shipped from third countries has now been approved in Brussels. The measure is set to come into force on 1 July 2026 and aims to address the growing impact of low-cost e-commerce platforms – not only in fashion, but particularly visible there – such as Shein, Temu, and AliExpress.

The tax will be applied per parcel, not per item. This means that three products shipped together in a single package will incur a total charge of €3, whereas three separate parcels would be taxed €9 in total. 

The structure clearly incentivises consolidated shipping rather than discouraging consumption itself.

Extra-EU parcel tax: Italy targets low-cost imports in bid against unfair competition

Italy is preparing to introduce its own levy on shipments from outside the European Union valued under €150 (approximately $176). At the same time, the government plans to double its financial transaction tax, as Rome seeks additional revenue to fund costly budget amendments, according to official documents.

With around 330 million low-value parcels arriving in Italy each year, and accounting for the likelihood that some sellers will attempt to circumvent the new charge, the government estimates annual revenues of €245 million from the measure.

Specifically, the low-value parcel levy – fixed at €2 per shipment – is projected to raise €122.5 million next year, followed by €245 million annually in both 2027 and 2028, according to parliamentary documents cited by Reuters.

In September, the government led by Prime Minister Giorgia Meloni also projected that the overall tax burden – defined as total taxes and social contributions relative to GDP – would rise to 42.8% this year, up from 42.5% in 2024. This places Italy among the most heavily taxed economies in the developed world.

Some considerations: what are the real reasons behind this?

The extra-EU parcel tax represents Europe’s most direct challenge yet to Chinese ultra-fast fashion as a business model. However, this legislative move does not appear to be driven primarily by environmental or sustainability concerns. Rather, it functions as a form of industrial protectionism, aimed at shielding European fast-fashion producers from external competition.

This raises an uncomfortable but necessary question: if fast fashion is widely acknowledged as destructive and unsustainable, on what grounds should its European version be protected?

Ultimately, we must also ask whether a €3 or €2 levy can genuinely deter the purchase of ultra-low-cost goods. If the tax fails to alter consumer behaviour, it becomes reasonable to conclude that its true purpose is simply to redirect significant sums into national or European coffers.

And these sums are far from negligible.

Taking the 2025 estimate of 12 million parcels per day and multiplying it by €3 gives a theoretical annual revenue. This total exceeds €13 billion.

A considerable income for governments, even if consumer behaviour remains unchanged.