Dhaka: Bangladeshi entrepreneurs are now looking to invest in Myanmar in some sectors they have expertise in, as the two neighbouring countries have made easy trading arrangements.

An NBR official also said that Myanmar could be an alternative source of Bangladesh for importing various essential goods like onions, rice and ginger at times of crisis, as there has been a dearth of those food and spice items.

According to him, it is now high time Bangladesh transferred expert people to Myanmar for grabbing its market by using their know-how.

Bangladesh has account-trade arrangement with the natural resource-rich but cash-strapped country, which is a trading system without needing foreign currency as hard cash for business transaction.

“We are now looking to invest in Myanmar in some sectors like ceramics, garments, melamine, pharmaceuticals, timber and gas,” AS Jahir Muhammad, member of the National Board of Revenue (NBR) told UNB correspondent Fahad Ferdous.

He also mentioned that within this year Bangladesh and Myanmar would sign an agreement withdrawing double taxation that will make things ease for the Bangladeshi investors to invest over there.

“We have more expertise than Myanmar and we would be much benefited after signing the agreement,” he said, adding that Myanmar is very much potential for Bangladeshi investors.

The reclusive nation has a huge reserve of natural gas and the investors from here could invest in that sector to produce LPG fuel for Bangladesh, besides doing other downstream business with the hydrocarbons.

Bangladesh and Myanmar have agreed on a 30-point deal for withdrawing the double-tax system aiming to start formal business in a bigger way and also enhance cooperation in other fields between the two neighbouring countries.

The two sides signed agreed minutes on the umbrella agreement here on August 24 in the second phase of negotiations. In the first phase of the negotiations, held September 15-17, 2003 in Yangon, the two sides had agreed on 10 articles of the deal. The remaining 20 articles were finalized in the Dhaka meet.

AJ Jahir Mohammad, the NBR member, and U aye Ko, Myanmar Internal Revenue Department (IRD) Deputy Director General, signed the agreed minutes for the two sides.

According to NBR sources, it was the 25th agreement on withdrawal of dual-tax arrangement of Bangladesh with other individual countries.

The major ones of the 30 articles are on shipping and air communications, dividend, interest, royalty, capital profit and student-trainees.

In the minutes it is stated that the native air authority would pay the tax in the respective country. The tax would be paid for ship plying at half the applicable rate.

The dividend-recipient person will pay his tax in his native country while the income from the interest will be payable in the country wherein the money earned. For royalty the rule will be the same as of interest.

Students and trainees would be exempt from paying tax on earnings up to $2,000.

Jahir Mohammad said that the agreement would now go to the Law Ministry for further verification and then it would be placed with the cabinet for final approval.

“Then the last agreement at the highest level of government would be struck either in Bangladesh or in Myanmar within a possible quick time,” he said.

Prime Minister, Foreign Minister or Finance Minister or Secretary would sign the broad-based agreement, he said.

“To facilitate business and formal trade between the two countries this agreement is very much essential-with this agreement we will construct a solid ground for our investors in Myanmar,” the NBR member said.

Myanmar IRD Director Zaw U told UNB after the meet here that both Bangladesh and his country would be “benefited through this agreement”.