THE TAX SYSTEM AND THE MANAUS FREE TAX ZONE: AN ANALYSIS OF TAX INCENTIVES IN THE MANAUS FREE TAX ZONE

Abstract

This article analyzes the evolution of the Brazilian tax system and the strategic role of the Manaus Free Trade Zone (ZFM) as an instrument for promoting regional development and tax justice. In this context, the ZFM, created in 1967 and constitutionally consolidated, represents a public policy aimed at overcoming historical regional inequalities in the Amazon through tax incentives. The main objective of the research is to analyze the effectiveness and sustainability of the ZFM's tax incentives in the face of the Tax Reform instituted by Constitutional Amendment No. 132/2023, which reconfigures consumption taxes and imposes challenges to maintaining the special regime. The methodology used is qualitative and documentary, based on the analysis of legislation, case law, tax doctrine and recent economic studies. The results demonstrate that the ZFM has been effective in generating jobs, increasing regional revenue, containing deforestation and productive integration of the Amazon. However, structural limitations persist, such as dependence on a few industrial sectors and the need for economic diversification. The conclusion indicates that, although tax reform represents a challenge, the permanence of tax incentives is legally assured and justified by their positive impacts.