The chapter examines the role that EU taxation plays in support of a transition towards more sustainable production models in the fashion industry. The manufacturing of clothing and apparel, fundamentally treated as disposable goods subject to the ebbs and flows of fashion trends, doubled from 2000 to 2014: while the current global fashion industry production chain carries with it huge economic implications, it has also been shown to have an extremely problematic negative environmental impact, characterized by an elevated consumption of water, and is recognized as one of the most polluting industrial sectors. Currently, a comprehensive and clear EU approach to the problem is missing. The chapter intends to support the critical conversation on the role of taxation in this reconversion process through an examination of the EU position as it may emerge from the ‘EU Strategy for Sustainable and Circular Textiles’ document.