STAR BUSINESS REPORT, Ctg

Tyre importers, dealers and transport operators have urged the government to withdraw a proposed 20 percent supplementary duty on commercial vehicle tyres, arguing that the measure would increase transport costs and add to inflationary pressures.

At a press conference in Chattogram yesterday, leaders of the Chattogram Tyre Tube Importers and Dealers Group said the proposed duty would raise the overall tax incidence on imported commercial vehicle tyres to 96.1 percent from 64.25 percent.

They alleged that the measure seeks to protect local manufacturers, who meet only 10-15 percent of domestic demand, at the expense of an import-dependent market that supplies around 85-90 percent of the country’s commercial vehicle tyres.

“Tyres are not luxury goods; they are essential to the transport and supply chain,” said Main Uddin Ahmed, president of the organisation. “Higher tyre prices will increase operating costs for trucks, buses and cargo vehicles, ultimately pushing up the prices of goods and services.”

Rejecting allegations of duty evasion in tyre imports, he said imported tyres undergo 100 percent physical inspection and are assessed based on weight, leaving little room for under-invoicing or tax avoidance.

Representatives of transport owners’ associations who attended the event warned that higher tyre costs would raise freight charges and passenger fares, creating a ripple effect across the economy and putting additional pressure on consumers.

The speakers called on the government to reconsider the proposed duty and engage with stakeholders before finalising the measure.