February 10, 2023

10:02

Daniel Amorim – From Amazon Agency

MANAUS – The extraordinary secretary of the Ministry of Finance for Tax Reform, Bernard Appy, opened a new chapter in the clash between the federal government and tax exemptions in the Manaus Free Trade Zone (MFTZ). In an event promoted by the RenovaBR group on Wednesday, 8, he said that the tax reform planned by the Lula government should include the withdrawal of tax exemptions from the model.

On January 23, the vice-president and Minister of Development, Geraldo Alckmin, declared that the government intends to end the Tax on Industrialized Products (IPI). The exemption from this tax for companies in the Manaus Industrial Complex (PIM) is what guarantees the model’s competitiveness with other states in the federation. Alckmin, however, reconsidered his position after the negative repercussion of his speech.

Federal Lawmaker Amom Mandel (Citizenship-AM), who attended the event, noted that the measure announced by Appy goes against the guarantee of protection of the MFTZ announced during the presidential campaign. “The statement goes against what Lula promised during the campaign: ‘Free Trade Zone will be untouchable’. It is also the opposite of what Alckmin said to me and other representatives yesterday (Tuesday),” he wrote in a post on Twitter.

In updating the post, the deputy reported that the representative of the National Council of Industry (CNI) said that the entity supports, unanimously, the changes announced by Appy. Mandel also informed that he will mobilize the other members of the Amazon caucus in the House to stop the initiative.

Sovereignty

According to Thiago Milanese, a tax lawyer and specialist in the legislation of the Manaus Free Trade Zone, the statement foments the idea that the model was created to benefit companies installed in the Amazon, besides creating legal insecurity.

“Many people have the conviction that the benefits were created to favor companies. ZFM was created to integrate, preserve and guarantee our sovereignty over the Amazon region. In addition, it hinders the migration of new companies to the state. When the businessman who is thinking of allocating capital in the MFTZ reads this news, he does not think twice. He will wait for the government’s next steps”.

Milanese recalls that maintaining the MFTZ was a national choice, since it is provided for in the Constitution. “This must be respected”, he stressed.

Loss of revenue

Among the measures foreseen in the reform are changes in consumption-related taxes, such as the Tax on Circulation of Goods and Services (ICMS), changes in the Income Tax and charges on salaries. The federal government expects the text to be approved in Congress by the end of the first half of 2023.