[REVISION HISTORY]

Manaus Free Zone tax dispute and funding fight

Updated 1 time since CLSTR started tracking revisions of this situation.

What changed

2026-07-29 04:58 UTC → 2026-07-31 20:25 UTC · added ~~removed~~

The expansion plan announced in early June 2026 continues to draw multinational investment while attracting heightened scrutiny over transparency, fiscal policy and environmental standards. By late June the municipality reported a 23 % rise in licensed construction area for 2024, issuing permits for over 1 million m² of new buildings and projecting more than 35 000 direct and indirect jobs. Former state secretary Marcellus Campêlo, now a União Brasil candidate, has championed the ZFM+ESG programme, urging firms in the Polo Industrial de Manaus to obtain sustainability certifications and lower carbon emissions to position the Zona Franca as a low‑carbon industrial hub. On 1 July the federal tax authority issued a new interpretation of Complementary Law No. 224/2025 that applied a linear 10 % reduction to the zero‑rate PIS and Cofins regime for inputs destined for the Manaus Free Trade Zone. Industry bodies warned the measure would raise production costs and weaken competitiveness. The next day the 3rd Federal Civil Court in Amazonas granted an injunction suspending the rule, keeping the zero‑rate treatment in place while the broader dispute proceeds toward higher judicial review. On 9 July the São Paulo Federation of Industries (Fiesp) appealed to the 1st Regional Federal Court, seeking to overturn a prior dismissal of its public‑civil action that challenged tax incentives – including IBS and CBS credits under Complementary Law No. 214/2025 – arguing they give firms an unfair advantage and could spur relocation to Amazonas. Senator Eduardo Braga reiterated his defence of the zone’s “integral advantages,” pledging political, technical and legal counter‑measures. On 22 July Senator Plínio ~~Valério, nearing the end of his term,~~ Valério allocated no parliamentary amendments specifically for the Manaus Free Trade Zone, redirecting R$ 2.2 million to 19 municipalities outside Amazonas and sending only generic, unearmarked funds to Manaus.

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