Italy's Bold Move to Safeguard Fashion Industry with Import Tax

Italy plans to introduce a tax on low-value postal packages from non-European nations, primarily targeting imports from China. The initiative seeks to protect the country's fashion industry from unfair competition posed by low-cost foreign imports, specifically impacting online platforms like Shein and Temu.

Italy is set to impose a tax on low-value postal packages originating from non-European countries, a move politicians argue will shield the country's fashion industry from inexpensive foreign imports, predominantly from China. This measure is designed to counteract what Italian lawmakers describe as unfair competition in one of the nation's crucial markets.

The ruling parties are proposing a levy on shipments valued at less than 150 euros ($175). This plan aligns with discussions at the European Union level and is anticipated to be formalized as an amendment to next year's national budget in the coming weeks.

In 2024, EU customs processed approximately 4.6 billion low-value online purchase packages, with 91% sourced from China, marking a significant increase from 2023. This situation underscores the need for Italy's legislative actions as it confronts a surge in low-cost imports.

(With inputs from agencies.)