Apparel brands push for resale tax breaks

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Fashion and retail heavyweights along with resale platforms push for tax breaks and EPR funding to make second-hand fashion commercially viable at scale 

A sewing machine repairing a denim fabric
It's thought these measures could lift gross profit margins to as much as 55% for resale and around 41% for repair.

LONDON – Some of the world’s biggest fashion retailers such as Primark, H&M, and Decathlon along with resale platforms have called on policymakers in the EU, US and Canada to “fix the economics” of resale and repair, warning that current tax and regulatory regimes still favour producing new clothes over keeping existing garments in use.

The signatories argue that resale and repair operators face high labour costs and multiple layers of taxation, with items often taxed at every transaction rather than only at the original point of sale, making it harder for circular models to compete on price with new products.

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