Win Myaing, a government spokesman in the restive state of Rakhine, said the trouble started in the coastal town of Thandwe yesterday after a Buddhist taxi driver told police he had been verbally abused by a Muslim small business owner while trying to park in front of his shop.
Police took the Muslim man in for questioning. But when he was released soon after, people became angry and started throwing stones at his home.
"The situation is under control but very tense." Myo Min a Muslim resident of Thandwe contacted by phone told The Associated Press, adding that residents were fearful because they were hearing rumors that more Buddhists in Rakhine would come to Thandwe to destroy Muslim houses.
A similar incident occurred in Thandwe, 270 kilometres northwest of Yangon, three months ago when two Muslim houses were burned down after rumors circulated that a woman had been raped by Muslim men.
Myanmar, a predominantly Buddhist country of 60 million people, has been gripped by sectarian violence since June of last year. Most of the 250 people killed have been Muslims and 140,000 others have been displaced.