Australia Urged to Implement Tax on Fast Fashion Retailers like Temu and Shein

A call has risen for Australia to follow France’s lead and place a tax on fast fashion brands and marketplaces such as Temu and Shein.

The French senate has overwhelmingly passed a vote, 337 to one, to introduce a proposed tax of at least €5 ($8.90) on products from fast fashion companies that demonstrate poor environmental standards.

This minimum will rise to €10 ($17.80) by 2030.

The goal is to motivate the commerce giants, and the rapidly growing fast fashion industry, into adopting stricter environmental standards.

It’s a world first, and there are calls for Australia to be second.

The Institute said fast fashion items were often manufactured using high volumes of polyester, a plastic, fossil fuel-derived fabric.

Many reportedly end up in landfill within 12 months of purchase.

“In order to protect the environment and support Australian fashion brands, it’s crucial to significantly cut waste at its origin. This can be achieved by penalizing brands that mass-produce inexpensive, low-quality garments that are typically worn only a few times before being discarded,” stated Nina Gbor, director of the circular economy and waste program at the institute.

“We should now implement a tax that’s big enough to change people’s shopping behaviour.

“The funds generated could be channeled into initiatives aimed at bolstering Australia’s emerging textiles industry and fostering a circular economy. This can be done by motivating consumers to reuse, repair, and recycle their clothing,” she added.

9news.com.au has contacted Temu and Shein for comment.

In a statement to the BBC following the French senate vote, a Shein spokesperson said the law would “worsen the purchasing power of French consumers, at a time when they are already feeling the impact of the cost of living crisis”.

Temu and Shein, leading lights of the “fast fashion” industry, are both e-commerce outlets based in China.

Temu defines itself as an online marketplace rather than a brand, and does not manufacture its own products.