Fiesp appeals to reopen legal challenge over Manaus Free Trade Zone tax incentives

The São Paulo Federation of Industries (Fiesp) has filed an appeal with the 1st Regional Federal Court (TRF‑1) seeking to overturn a federal‑court decision that dismissed its public‑civil action questioning tax incentives granted to companies operating in the Manaus Free Trade Zone (Zona Franca de Manaus). The appeal argues that the presumed credits of IBS and CBS provided under Complementary Law No. 214/2025 give an unfair competitive advantage, could encourage firms to relocate to Amazonas, and distort competition with other Brazilian states.

Senator Eduardo Braga (MDB‑AM) responded, stating he will defend the zone’s “integral advantages” that were preserved by Congress during the tax‑reform regulation and affirmed their constitutional backing. Braga pledged political, technical and legal counter‑measures against Fiesp’s challenge, emphasizing the importance of the zone for employment and the regional economy.