The National Board of Revenue (NBR) has been asked to formulate a general guideline under which Indian projects in Bangladesh will enjoy tax exemption.
A recent inter-ministerial meeting at the foreign ministry took the decision.
The meeting was convened to assess the present status of bilateral cooperation with India ahead of Prime Minister's visit to the neighbouring country next month.
Chaired by foreign secretary Shahidul Haque, the meeting also suggested that the tax collector discuss the matter with relevant higher authorities.
Officials said the foreign ministry had sent an official letter to the NBR to look into the tax and value added tax (VAT) related issues of the projects funded by the Indian government.
A senior official who attended the meeting told the FE tax exemption was sought for the Akhaura-Agartala rail link project.
Waiver was also sought on the advanced income tax payment by Indian company ONGC Videsh Ltd.
Besides, VAT exemption was sought from the hiring of project management consultant for evaluating dredging project on Ashuganj-Zakiganj stretch of the Kushiyara river and Sirajganj-Daikhawa stretch of the Jamuna river.
The issues have remained unsettled for a long period, the official said.
According to officials, the issue of 'disparity' in minimum import price (MIP) levied on Indian exports to Bangladesh and other countries also came up for discussion.
While the Foreign Office forwarded the letter to the NBR on July 23 on this issue, the revenue board has not responded as yet.
The issue of lifting port restrictions on Indian products, including tea, through Akhaura was also discussed in the meeting, another official said.
He said the port restrictions issue has remained unresolved on both sides.
Many of the Bangladeshi products cannot enter India using all land ports, the official said, adding the barrier constrains boosting exports.
"The port restrictions issue needs to be resolved through extensive bilateral discussion among the high-ups," he said.
