Duty hike on imported tyres to boost local production: Manufacturers

Bangladesh’s tyre manufacturing sector is expected to receive a boost and help save foreign currency following the government’s proposal to impose 20% supplementary duty on the import of light truck tyres and VAT on agricultural tyres in the proposed budget for FY2026-27, industry leaders said today.

The Bangladesh Tyre-Tube Manufacturers and Exporters Association made the remarks at a post-budget press conference at Holiday Inn Dhaka today (22 June).

Luthful Bari, vice-president of the association and chief executive officer of Meghna Tyre, presented a written statement outlining the budgetary measures affecting the sector and their potential impact on investment and employment.

“New investments will come in, and factories currently operating below capacity will be able to utilise their full production potential,” Bari said, adding that Meghna Group plans to invest around Tk1,000 crore in a radial tyre manufacturing plant.

He also said locally produced tyres would be cheaper than imported ones.

Sohel Rahman, general manager of Jamuna Tyre, said every direct job created in the tyre industry generates around 12 indirect jobs.

The proposed duty measures would discourage imports and support domestic manufacturers, he said, noting that tyres worth Tk4,700 crore were imported into Bangladesh last year.

Among others, Md Miraj Rahman, managing director of Rupsha Tyres; Md Faisal Faruqe Tuhin, vice-president of BTMEA and representative of Apex Husain (Husain Tyre); Major Arefin (retd), general manager of AKIJ Venture GP; and Md Shoriful Islam, chief operating officer of RFL, also spoke at the briefing.