STICA calls for secondhand clothing tax cuts

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VAT reduction could strengthen economic viability of second-hand markets and encourage companies to invest in new services

A secondhand clothes shop

The Scandinavian Textile Initiative for Climate Action (STICA), the European platform driving climate accountability in the apparel and textile sector, has call on the Swedish government to lower VAT on second-hand clothing sales.

Together with 47 of its signatories, the organisation has released a joint position in support of a 6% VAT rate, on second-hand clothing, highlighting how targeted fiscal policy can accelerate the transition to a more circular and climate-friendly textile sector. The current general rate for clothing is 12%.

 

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