Tyre importers urge withdrawal of proposed 20pc SD

CHATTOGRAM, June 21: Tyre importers, dealers and transport operators have urged the government to withdraw the proposed 20 per cent supplementary duty (SD) on commercial vehicle tyres, arguing that the measure would significantly raise transport costs and add fresh pressure to inflation.

They alleged that the proposed duty is intended to protect local manufacturers that meet only 10-15 per cent of domestic demand, while the import-dependent segment burdened with a heavier tax supplies the remaining 85-90 per cent of the market.

The concerns were raised at a press conference organised by the Chattogram Tyre Tube Importers and Dealers Group at the World Trade Centre in Chattogram on Sunday. Representatives from several transport owners' associations also attended the event and lent their support in favour of the demand.

According to the leaders of the organisation, the proposed FY2026-27 budget seeks to impose a 20 per cent supplementary duty on commercial vehicle tyres. If implemented, the total tax incidence on such tyres would rise from 64.25 per cent to 96.10 per cent.

Presenting the group's statement, Joint Secretary General Saifuddin Ahmed said, "The measure would substantially increase import costs and ultimately push up transportation cost across the economy."

President of the Chattogram Tyre Tube Importers and Dealers Group Main Uddin said, "The impact of the proposed duty would extend well beyond the transport sector. An additional tax on tyres will affect agriculture, industry and ordinary consumers alike. The government should review the proposal in the interest of controlling inflation and protecting economic activity."

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