Budget measures to boost tyre production, cut imports

Tyre manufacturers expect domestic production to rise and import dependence to fall following measures proposed in the fiscal year 2026-27 budget, including a 20 percent supplementary duty on light truck tyre imports and value added tax on agricultural tyres.

The measures are expected to help save foreign currency by encouraging local manufacturing, industry representatives said at a post-budget press conference organised by the Bangladesh Tyre-Tube Manufacturers and Exporters Association (BTMEA) at Holiday Inn in Dhaka yesterday.

In a written statement, Lutful Bari, vice-president of BTMEA and chief executive officer of Meghna Tyres, outlined the budget’s impact on the industry, including its possible effects on investment and employment.

“The proposed measures will encourage fresh investment and help existing factories operating below capacity expand production,” he said.

Bari added that Meghna Group plans to invest around Tk 1,000 crore in a radial tyre manufacturing plant.

He also said that locally produced tyres would be more competitively priced than imported ones.

Sohail Rahman, general manager of Jamuna Tyres, said each direct job in the tyre industry creates about 12 indirect jobs.

“The new supplementary duty will discourage imports and support local manufacturers,” he added.

Rahman also said Bangladesh imported tyres worth around Tk 4,700 crore last year.

The event was also attended by Miraj Rahman, managing director of Rupsha Tyres; Md Faisal Faruque Tuhin, vice-president of BTMEA and representative of Hossain Tyres; and Md Shariful Islam, chief operating officer of RFL.