Brussels Considers Tax on Ecommerce Platforms to Combat Duty Evasion

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Brussels Considers Tax on Ecommerce Platforms to Combat Duty Evasion
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Measures include a new tax on platforms' revenue and an administrative fee per item, aiming to reduce the influx of cheap goods that evade customs duties and checks. The EU is targeting popular online platforms such as Temu and Shein, dealing with a surge in lower-value parcels and the rise in dangerous goods.

Brussels is considering a tax on ecommerce platforms to address the surge of goods sold on sites that evade customs duties and checks. Measures include a new tax on platforms' revenue and an administrative fee per item, making most shipments less competitive. EU trade commissioner Maroš Šefčovič estimates around 4 billion lower-value parcels will be flown to the EU this year, almost triple the number in 2022, with most not being checked due to the €150 duty threshold.

This has led to an increase in imports of dangerous goods, such as toxic toys, and is seen as undercutting European competitors who face higher production costs to adhere to EU standards. The EU executive is targeting popular online platforms like Temu and Shein but faces complications due to international law

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