The government plans to reduce tax on raw materials for construction sector from the next fiscal year.

Finance Minister AHM Mustafa Kamal said this while placing the budget for the 2021-22 fiscal year today.  

From the next fiscal, the rate of tax on import of raw materials related to cement production has been reduced to 2 per cent from the existing 3 per cent.

Besides, the rate of tax deduction at source on supply of cement, iron and iron products has been reduced to 2 per cent from 3 per cent.

Kamal said cement, iron and iron products are the key components of infrastructural development.

If tax incentive is provided to the industries engaged in production of these items, development of physical infrastructure will be easy and cost-effective, he said.

"I am hopeful that these measures will help these industries to flourish and also enable them to make a positive contribution to the infrastructural development of the country," Kamal added.