Zona Franca de Manaus tax incentives face debate over future

Zona Franca de Manaus tax incentives Manaus Industrial Pole import substitution Amazonas economy

Debate has intensified regarding the future of the Zona Franca de Manaus (ZFM) tax incentive model. Federal Deputy Kim Kataguiri has proposed a gradual phase-out of these incentives, arguing that the current system rewards industrial inefficiency. His proposal suggests transitioning the region toward strategic sectors such as biotechnology and biomedicine.

In response, Amazonas Vice-Governor Serafim Corrêa defended the model, citing its effectiveness in import substitution. Corrêa noted that in 2025, the region transformed $16 billion in imported components into $40 billion in finished products, representing a $24 billion value addition.

Supporting this defense, Arthur Virgílio Neto highlighted the economic impact of the Manaus Industrial Pole (PIM). According to Suframa data, the PIM generated R$ 121.76 billion in revenue during the first half of 2026 and maintained an average of approximately 130,903 jobs. In 2025, annual revenue reached R$ 227.67 billion with 131,401 direct jobs.