"To ease their financial burden the government proposes to increase the depreciation allowance from 12.5 percent to 25 percent."
An existing withholding tax on construction fees would be reduced from 5 percent to 1 percent.
The industry would no longer have to get import licenses to bring in used construction equipment, the President said.
Profits earned from construction contracts in foreign countries are already exempt from income tax.
The government was also planning to collect a cess to set up a Guarantee Fund for the industry, with the withholding tax.The government said it wanted to implement a a co-ordinated program with organizations in the industry and skills development institutions to produce craftsmen to fill the human resources shortage in the industry.
Cement imported for government projects would be exempted from duty.