Italy’s €2 Parcel Tax Backfires as Cargo Reroutes to Other EU Countries
Italy’s pioneering attempt to curb the flood of cheap Chinese e-commerce imports has spectacularly backfired, with cargo flights now bypassing Italian airports entirely and landing elsewhere in the European Union to avoid the controversial levy.
The Policy That Missed Its Target
As of 1 January 2026, Italy triggered a levy on non-EU logistics flows, imposing a fixed contribution of 2 euros on all shipments with a value of less than 150 euros from countries outside the European Union Il Sole 24 ORE. Prime Minister Giorgia Meloni’s government designed the measure to stem the surge of ultra-cheap goods from Chinese e-commerce giants including Shein and Temu, while simultaneously raising revenue for public coffers.
The tax applies specifically to parcels arriving in Italy after January 1, targeting the estimated 327 million annual shipments that previously entered duty-free under the €150 threshold. The Ministry of Enterprise and Made in Italy defended the measure as necessary equalisation with respect to the costs incurred by physical retailers Il Sole 24 ORE, framing it as protection for Italian businesses struggling against unfair competition from overseas platforms.
The Unintended Consequences
Rather than generating expected revenues and protecting Italian retailers, the tax has triggered an immediate and damaging response from logistics operators. Italian airport authorities and cargo handlers report sharp declines in small package volumes as international carriers simply reroute shipments to alternative EU entry points.
Valentina Menin, director-general of Assaeroporti, which represents companies operating 32 Italian airports including Milan’s Malpensa—one of Europe’s major cargo hubs—warned that “the measure has had a boomerang effect” with “the entire Italian logistics sector losing business.” This represents a significant blow to Italy’s strategic positioning as a Mediterranean gateway for EU-bound goods.
The problem stems from the fundamental nature of the EU single market. Once goods clear customs at any EU entry point, they can move freely throughout the bloc without additional checks. Logistics operators, facing Italy’s €2 surcharge, have rationally chosen to land cargo in neighbouring countries where no such fee applies, then transport goods to Italian consumers via ground shipments within the EU’s borderless zone.
Revenue Expectations vs Reality
Italy expected the measure to raise €123 million in 2026, and then €245 million in 2027 onwards VATCalc. However, these projections assumed cargo volumes would remain constant despite the new charge—a critical miscalculation that ignored the flexible nature of international logistics networks and the competitiveness of European airports for cargo business.
The revenue shortfall extends beyond direct tax losses. Italian airports lose landing fees, handling charges, fuel sales, and employment associated with cargo operations. Logistics companies based in Italy face declining business, threatening jobs in warehousing, customs brokerage, and transportation sectors. The economic damage compounds as cargo carriers establish alternative European routing patterns that may prove difficult to reverse even if Italy eventually repeals the tax.
The Broader European Context
Italy’s difficulties illuminate challenges facing the entire European Union as it attempts to address the explosive growth of Chinese e-commerce imports. The number of low-value ecommerce packages arriving in the bloc doubled last year to 4.6bn, over 90% of them from China Irish Examiner, creating enormous pressure on customs systems and domestic retailers.
Several EU jurisdictions have already decided to introduce their own national handling charges in 2026, including France, Belgium, Romania, and the Netherlands VATCalc. This patchwork approach risks creating exactly the routing distortions Italy now experiences. The Italian motion explicitly warns that the absence of a domestic fee could redirect further volumes to Italy if neighbouring countries implement charges in January 2026 VATCalc—yet Italy’s experience demonstrates the opposite problem.
The European Commission has attempted coordination through an EU-wide solution. EU countries agreed to impose a €3 tax on all parcels under €150 entering the bloc, effective from 1 July 2026 Euronews, alongside discussion of a €2 handling fee from November 2026. However, this coordinated approach comes too late for Italy, which moved unilaterally and now suffers competitive disadvantage during the interim period.
Lessons for Policy Makers
Italy’s experience offers crucial lessons about implementing national measures within integrated markets. Unilateral action on cross-border commerce creates immediate arbitrage opportunities that sophisticated logistics networks exploit efficiently. The single market’s fundamental principle—free movement once goods enter anywhere in the EU—means isolated national measures often prove counterproductive unless implemented simultaneously across all member states.
The case also highlights tensions between national sovereignty and collective action. Individual countries face political pressure to act decisively on visible problems like Chinese e-commerce competition, yet effective solutions require coordinated European responses that move slowly through multilateral negotiations.
The Path Forward
Italian officials now face difficult choices. Suspending or repealing the tax would represent embarrassing policy reversal while abandoning revenue projections already incorporated into budget planning. Maintaining the tax means accepting ongoing damage to Italy’s logistics competitiveness and cargo sector employment.
The optimal solution requires EU-wide implementation that eliminates routing incentives—but this won’t arrive until mid-2026 at earliest, leaving Italy’s cargo sector vulnerable for months. This episode demonstrates how even well-intentioned protectionist measures can backfire spectacularly when implemented without considering the integrated nature of modern European commerce and the adaptability of global logistics networks.
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