The Bangladesh Tyre-Tube Manufacturers and Exporters Association (BTMEA) has strongly rejected allegations made by tyre importers over proposed fiscal measures in the FY2026-27 national budget, describing their claims as “misleading, incomplete and detached from reality.”
In a statement issued on Saturday, the association defended the government’s proposal to impose a 20 percent supplementary duty on imported light truck tyres under HS Code 4011.20.00, saying the measure would help protect domestic industrialisation, safeguard local employment and reduce foreign currency outflows.
The response came after the Chattogram Tyre Tube Importers and Dealers Group criticised the proposed duty at a recent press conference, claiming it would significantly increase transport costs and tyre prices.
BTMEA said recent price increases in the tyre market were primarily driven by global economic factors rather than domestic manufacturers. It noted that international prices of natural rubber rose by between 55 and 72 percent during 2024 and 2025-26, while synthetic rubber prices increased by 20 to 30 percent. Prices of other key raw materials, including carbon black, nylon cord and bead wire, also registered substantial increases.
The association also pointed to the depreciation of the Bangladeshi taka against the US dollar, saying the exchange rate had weakened from around Tk107 per dollar in 2023 to Tk122-123 at present, significantly increasing import costs for local manufacturers.
Rejecting importers’ claims that light truck tyres last only 30,000 to 40,000 kilometres, BTMEA said both local manufacturers and importers generally provide warranties of at least 40,000 kilometres for standard 7.50-16 tyres.
Based on that mileage, the association calculated that the proposed supplementary duty would add only Tk8.27 per tyre for every 100 kilometres travelled, or around Tk49.62 per 100 kilometres for a six-tyre light truck.
It also clarified that the proposed duty applies only to one specific HS code covering light truck tyres and does not affect standard truck or bus tyres, which account for the bulk of the country’s freight transportation.
BTMEA further raised concerns over the declared import prices of tyres, urging the government to investigate possible under-invoicing.
According to the association, importers have claimed that 7.50-16 tyres are sourced at around US$70 per unit. However, since each tyre weighs approximately 27.5 kilograms, the declared price translates to only US$2.54 per kilogram, which BTMEA said is even lower than the international market price of raw natural rubber.
The association alleged that tyres imported at an equivalent landed cost of around Tk8,610 were being sold in the domestic market for Tk16,700, with retail prices reaching Tk20,700 even before the proposed budget measures.
It called on the Bangladesh Competition Commission and VAT authorities to examine the pricing discrepancies.
Dismissing allegations of monopoly in the 4.00-8 tyre segment for CNG-powered and electric three-wheelers, BTMEA said several local manufacturers, including RFL Tyres, Apex Hussain Tyre, Rupsa Tyre, Meghna Innova Rubber, Zess Tyre and MTF Tyre, are actively competing in the market.
The association also welcomed proposed VAT changes for agricultural tyres, saying the reforms would correct a longstanding policy imbalance that had favoured imported products over locally manufactured tyres subject to VAT.
Highlighting that neighbouring countries such as India, Pakistan and Sri Lanka maintain protective tariff regimes for their domestic tyre industries, BTMEA said Bangladeshi manufacturers have sufficient capacity to meet national demand for 16-inch light truck tyres.
The association expressed its willingness to have locally manufactured tyres tested by internationally accredited laboratories and urged the government to retain the proposed 20 percent supplementary duty to protect domestic investment, employment and industrial growth.