Apparel brands push for resale tax breaks

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.