Federation is against presumed credits from IBS and CBS; Senator Eduardo Braga criticized the initiative
Fiesp (Federation of Industries of the State of São Paulo) filed a public civil action in the Federal Court to challenge provisions of the tax reform regulations that grant presumed credits to companies located in the ZFM (Manaus Free Zone). The information is from
The federation questions it because it considers that the benefits expand the region’s competitive advantage beyond what is permitted by the Constitution. The senator (MDB-AM), rapporteur for the regulation in the Senate, reacted to the action in his comments. He classified it as a harm to regional development and jobs in Amazonas.
The Manaus Free Zone is a model of economic development that enjoys constitutional protection until 2073. The industrial hub is defended by Suframa (Superintendence of the Manaus Free Zone) and State representatives as a vital instrument for regional integration and the preservation of the Amazon forest. In the new tax system, the model was preserved to maintain the competitiveness of products manufactured in the region in relation to the rest of the country.
Fiesp’s action, filed at the 1st Federal Civil Court of the Federal District, focuses on the presumed credits of . The federation states that these credits can result in an increase of up to 419% in the tax differential for IT products.
According to the entity, the benefits could cause the migration of industries from other units of the Federation to Amazonas. He argues that the benefit results in job and revenue losses in other states.
LC 214 establishes that credits will vary from 55% to 100% for IBS and 2% or 6% for CBS, depending on the type of product and operation. The presumed credit mechanism works to reduce the tax burden and allows companies to use larger credits than those actually collected in the previous stage of the production chain.
On the other hand, Cieam (Center for Industries of the State of Amazonas) states that there is no creation of additional incentives, only the maintenance of existing differences that would be extinguished with the reform. The superintendent of Suframa, Leopoldo Montenegro, highlighted that, with taxation at the destination, the collection will belong to the consumer State, which would benefit São Paulo.
Senator Eduardo Braga declared that the State of São Paulo itself has been granting tax incentives to attract industries since 2007. “There you can. In Amazonas, do they want to ban it?“, asked the senator.
The congressman stated that the ZFM is a constitutional right of the people of Amazonas and indicated that he will maintain the defense of the region’s competitive advantage during the regulation process in the National Congress.
