TAX REFORM IN THE MANAUS FREE TRADE ZONE ANALYSIS OF THE COMPETITIVE ADVANTAGE OF THE MANAUS FREE TRADE ZONE IN LIGHT OF TAX REFORM

Abstract

This article aims to analyze the development of the Manaus Free Trade Zone in light of Tax Law, considering the tax incentives that significantly enhanced one of the largest industrial hubs in Brazil. Instituted by Law No. 3,173 of 1967 with the objective of fostering the economic development of the state of Amazonas through the exemption and reduction of taxes, attracting large industries that employ thousands of local workers, as well as discussing the impacts resulting from the Tax Reform through Constitutional Amendment No. 132/2023, which aims to unify taxes with the objective of facilitating a tax system considered complex through the unification of taxes. There are currently estimates on this amendment, however, the impacts are evidently considerable considering the tax incentives that the Manaus Free Trade Zone receives, verifying through this article how the reform relates to the regional competitive differential.