THE CONSTITUTIONALITY AND EFFECTIVENESS OF TAX INCENTIVES IN THE MANAUS FREE TRADE ZONE

Abstract

This study examines the constitutionality and effectiveness of tax incentives in the Manaus Free Trade Zone (ZFM), analyzing their compliance with Brazilian constitutional principles and their role in the economic and social development of the Amazon region. Established in 1967, the ZFM aims to stimulate regional growth through tax exemptions and other fiscal benefits. The research indicates that these incentives are constitutional as they adhere to the principles of equality and the social function of property. Furthermore, the study highlights the importance of the ZFM in job creation, attracting investments, and diversifying the local economy—key factors in reducing regional inequalities. The research also addresses criticisms faced by this model, including concerns about its long-term sustainability and impact on tax revenue. Finally, the study presents reflections on the future of tax incentives and potential policy improvements to ensure that the ZFM continues to contribute to regional development, balancing economic growth with environmental preservation.