Senator Eduardo Braga (MDB-AM), rapporteur of the project that regulates (PLP 68/24), highlighted this Tuesday (19) the importance of preserving the competitive advantages of the Manaus Free Trade Zone (ZFM). The statement was made during a public hearing that discussed the impacts of the reform on the ZFM, Export Processing Zones (ZPEs) and Free Trade Areas (FTAs).
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“There is no point in guaranteeing the Manaus Free Zone in the Constitution until 2073 if we end its comparative advantage. This would mean the end of the Free Zone”, warned Braga. He emphasized that preserving the model is essential to avoid the destruction of the Amazon forest and the economic and social collapse of the state of Amazonas.
The senator also pointed out that the ZFM industrial hub has a direct impact on the cost of living of the population of Manaus and other regions of the state. Braga, who reported the proposed amendment to the Constitution (PEC) that instituted the tax reform, anticipated that he will make adjustments to the text to reinforce protection for the industrial hub of Manaus, the state’s commerce sector and the Legal Amazon. According to him, 95% of the issues related to the ZFM have already been resolved in the text.
In turn, Bernard Appy, extraordinary secretary for Tax Reform at the Ministry of Finance, reaffirmed the government’s commitment to maintaining the competitive advantage of the Manaus Free Trade Zone. According to Appy, the constitutional amendment of the tax reform provides fiscal, economic and financial mechanisms to guarantee the competitiveness of the ZFM, ZPEs and FTAs.
“The regulations ensure that the Manaus Free Trade Zone will remain competitive. The instruments can be applied individually or cumulatively, depending on the need”, explained Appy.
PLP 68/24 establishes the reform, such as the goods and services that will be subject to the selective tax, the operating model of the cashback system and the items that will have tax exemption or reduction, for example. The proposal has been discussed in a round of hearings at the Senate’s CCJ, before being voted on by the collegiate and going on for analysis in the plenary.
