Bangladesh’s tyre manufacturers have backed the proposed 20 per cent supplementary duty on imported light truck tyres, rejecting importers’ warnings of sharp price increases and instead calling for an investigation into alleged under-invoicing in the import trade.
The Bangladesh Tyre-Tube Manufacturers and Exporters Association (BTMEA) said claims made by the Chattogram Tyre Tube Importers and Dealers Group against the proposed FY2026-27 budget were “misleading, incomplete and detached from reality”.
It argued the duty would strengthen domestic manufacturing, protect jobs and reduce foreign currency outflows.
The proposed levy applies only to imported light truck tyres under HS Code 4011.20.00 and does not cover standard truck and bus tyres, which account for most of the country’s freight transport, the association said.
BTMEA attributed recent tyre price increases to global cost pressures rather than domestic market practices. It said natural rubber prices rose by 55-72 per cent and synthetic rubber by 20-30 per cent between 2024 and 2025-26, while prices of carbon black, nylon cord and bead wire also increased.
Over the same period, the taka depreciated from about Tk107 to Tk122-Tk123 against the US dollar, further raising manufacturers’ import costs.
The association also disputed importers’ claim that light truck tyres last only 30,000-40,000 kilometres, saying both domestic manufacturers and importers typically offer warranties of at least 40,000 kilometres for standard 7.50-16 tyres.
Based on that mileage, it estimated the proposed duty would add only Tk8.27 per tyre for every 100 kilometres travelled, or Tk49.62 per 100 kilometres for a six-tyre light truck.
BTMEA also questioned importers’ declared import values. It said importers claimed to buy 7.50-16 tyres at about $70 each. Given an average weight of 27.5kg, that equates to about $2.54 per kilogramme—below the international price of raw natural rubber alone.
The association urged the National Board of Revenue, the Bangladesh Competition Commission and VAT authorities to investigate possible under-invoicing, alleging tyres imported at an equivalent cost of Tk8,610 were being sold for about Tk16,700, with prices rising to Tk20,700 even before the budget proposal.
It also rejected claims that domestic manufacturers dominate the market for 4.00-8 tyres used in CNG and electric three-wheelers, saying producers including RFL Tyres, Apex Hussain Tyre, Rupsa Tyre, Meghna Innova Rubber, Zess Tyre and MTF Tyre actively compete in the segment.
BTMEA welcomed the proposed VAT changes on agricultural tyres, saying they would remove a long-standing tax advantage enjoyed by imported products over locally manufactured tyres.
The association said local manufacturers have sufficient capacity to meet national demand for 16-inch light truck tyres and noted that India, Pakistan and Sri Lanka also protect their domestic tyre industries through higher tariffs. It added that manufacturers were willing to have their products independently tested by international laboratories and urged the government to retain the proposed supplementary duty.
