The extension comes as the economy is poised for more than five per cent growth this year and the central bank is seen hiking interest rates for the first time in two years this month to keep price pressures in check.
"With the expiry-date at the end of June, there is a concentration of demand which is ... making (construction materials) expensive," Mantega said.
"We are extending the tax break until the end of the year to lessen the pressure on the sector."
Brazil’s government granted a series of tax breaks to key sectors during the global financial crisis to revive an economy which fell into a brief, six-month recession.
