Italys Parcel Tax Backfires As Revenue Falls

Italy's €2 tariff on small parcels from non-EU countries, intended to curb Chinese e-commerce platforms and boost revenue, resulted in a sharp decline in parcel volume, rerouted flights, tax revenue loss, and damage to the logistics industry. The policy aimed to protect domestic businesses but backfired. Members of Parliament have proposed postponing the tax and aligning with EU-wide tariffs, acknowledging the policy's detrimental effects. The situation highlights the potential for unintended consequences when implementing import tariffs in the context of global e-commerce.
Italys Parcel Tax Backfires As Revenue Falls

If "every policy breeds a countermeasure" is the survival mantra of market economies, Italy's attempt to levy a €2 tariff on small e-commerce parcels from China has become its latest cautionary tale. Intended to curb the influx of low-cost goods while boosting state revenue, the policy—set to take effect from January 1, 2026—has instead triggered unintended consequences.

Italian customs data reveals a 36% year-on-year drop in direct low-value parcel arrivals within the first 20 days of implementation. Ironically, to bypass the modest €2 fee, at least 30 cargo flights originally bound for Milan's Malpensa Airport have rerouted to EU hubs like Liège, Amsterdam, and Budapest. These parcels now exploit the bloc's single-market rules on free goods movement, effectively circumventing the tariff through cross-border logistics.

The Italian Airports Association has raised alarms over the steep decline in parcel processing, warning of operational disruptions across 32 national airports. The policy's loopholes have created further complications: untaxed parcels continue entering Italy via truck routes, shifting both revenue losses and environmental burdens to road transport. Projected to generate €245 million annually, the "micro-parcel tax" now risks long-term damage to domestic logistics. Industry groups warn the situation could deteriorate unless the government suspends the measure.

Facing mounting criticism, Italian lawmakers have proposed delaying the tariff until July 1 to align with a planned EU-wide €3 flat fee. However, observers question whether this adjustment will resolve the structural issues. The policy's stumble serves as a stark reminder: in an interconnected global economy, trade regulations require meticulous market analysis and risk assessment—or risk achieving the opposite of their intended effects.