Leaders of the country’s tyre manufacturing industry have welcomed the proposed national budget for FY2026-27, saying the new fiscal measures are set to strengthen domestic production, attract fresh investment and curb import dependency, ultimately helping to conserve valuable foreign exchange reserves.
At a post-budget press conference organised by the Bangladesh Tyre-Tube Manufacturers and Exporters Association (BTMEA) at a city hotel on Monday, industry leaders said the proposed policy framework would allow underutilised factories to ramp up production and operate closer to full capacity.
In his keynote presentation, BTMEA Vice-President Lutfool Bari said the tyre industry already plays a significant role in employment generation, noting that every direct job in the sector supports around 12 indirect jobs across the value chain.
He added that the newly imposed supplementary duty would help discourage excessive imports and create a more competitive environment for local manufacturers.
“Last year alone, Bangladesh imported tyres worth nearly Tk 4,700 crore, leading to a substantial outflow of foreign exchange,” he noted, stressing the need to strengthen domestic capacity.
BTMEA leaders also argued that the introduction of VAT on imported agricultural tyres has helped correct a long-standing imbalance, under which locally produced agricultural tyres were subject to VAT while imported products previously enjoyed a relative tax advantage.
They further said that Bangladesh’s tyre industry still receives comparatively lower policy protection than regional peers such as India, Pakistan and Sri Lanka, and called for a more balanced tariff structure to ensure fair competition.
The association urged the government to extend similar tariff support to the motorcycle tyre segment, introduce additional policy incentives for agricultural tyres, and reconsider proposed duty increases on key raw materials, including rubber accelerators, iron wire (steel cord) and MS nipples.
They warned that higher input costs could undermine competitiveness, increase production expenses and erode the growth potential of local manufacturers.
BTMEA leaders expressed optimism that sustained policy support would help Bangladesh move closer to self-sufficiency in tyre production, create new employment opportunities and significantly reduce import-related foreign exchange expenditure.
The press conference was attended, among others, by Miraj Rahman, Managing Director of Rupsha Tyres; Md Faisal Faruque Tuhin, Vice-President of BTMEA and representative of Hossain Tyre; Major (Retd) Arefin, General Manager of Akij Venture GP; and Md Shariful Islam, Chief Operating Officer of RFL
