Tax burden reductions in São Paulo do not affect ZFM

This Monday, the governor of São Paulo, Tarcísio de Freitas (Republicans), announced a reduction in the tax burden in various segments of the productive sector in São Paulo. This decision may affect the competitiveness of the Manaus Free Trade Zone (ZFM). However, specialists say that the measure does not reduce the security of the Industrial Pole of Manaus (PIM), and point out the reasons.

According to economist Denise Kassama, the reason why companies in the Industrial Pole of Manaus (PIM) are attractive is the offer of tax incentives, that is, companies come to the Amazon because they pay less taxes.

“We know that Manaus is an expensive city, logistically speaking, it is expensive to get inputs to the factories, as well as expensive to get this product out and sell it in the large national consumer centers, usually located in the Southeast, South, Midwest of the country. So, as there is no such tax difference, the attractiveness of the Industrial Pole of Manaus is reduced”, he explains.

During a statement on the reduction, the governor of São Paulo explained his decision, stating that the State cannot miss opportunities to bring companies. Therefore, it will invest and optimize actions to improve these incentives.

“This is an act in favor of the industry of São Paulo. We are activating all available levers to promote development in the State. Our journey will be aimed at promoting the reindustrialization of the State and promoting the competitiveness of São Paulo’s industry. Our expectation is that the waiver, even if at first it leads to a reduction in revenue, it will leverage investments in the State, with the generation of jobs and income”, he stressed.

In conversation with EM TEMPO, former deputy and economist Serafim Corrêa, who has extensive experience in defending the ZFM, says that, in this case, the pole’s security is guaranteed, as he believes it unlikely that any company based in the PIM will move to Sao Paulo.

“The companies that came here came as a result of a combination of three incentives: exemption from Import Tax on Components, payment of Import Tax with an 88% reduction when selling to the rest of Brazil, exemption from IPI and a reduction of 55 % to 100% of ICMS. There is no possibility that, in São Paulo, just with a reduction in ICMS, some sector will be moved from here to there”, he said.

This Tuesday and Wednesday (28th and 1st), meetings of the working group on tax reform took place. The federal deputy, Saullo Vianna (UNIÃO), was present as a member. During the conversation, he invited the Members to get to know PIM and understand how local production works.

“At our first meeting, I made a point of suggesting that we hold one of the work meetings in Manaus, so that parliamentarians can get to know our Free Zone model up close. I also made myself available to learn about initiatives in other states and listen to the sectors of the economy involved. My performance, from now on, will be like this, showing and knowing different points of view so that, at the end of the work, we can approve a fair reform for all”, he said.

At the Wednesday meeting, the Extraordinary Secretary for Tax Reform, Bernard Appy, signed a commitment to present a proposal to the Federal Government technicians to ensure the competitiveness of the ZFM. It was also guaranteed that the decisions will be negotiated directly with the bench and with the Government of Amazonas.

“The main effect of the tax reform is to greatly increase the country’s growth potential. And when the economy grows, everyone wins: citizens win, because they increase their purchasing power; Companies win, which grow more and are more profitable, and the government wins, because when the economy grows, the government collects more, declared the secretary.

Deputy Aguinaldo Ribeiro (PP-PB), rapporteur for the tax reform in the Chamber, suggested on Wednesday that the working group’s report on the project be released by May 16. Denise Kassama points out that, with the reduction of taxes in São Paulo, the current scenario does not change, but turns on the warning light.

“I believe that both our parliamentarians and technicians from Suframa, the State Government, are following the issue of tax reform. We have Minister Haddad’s statements, in which the idea is to preserve the Manaus Free Trade Zone, but I believe we need to follow it with caution. I understand that the Federal Government is not really interested in putting an end to the ZFM, not least because the executive has been very committed on the international stage in selling the preservation of the Amazon rainforest. And if one day there is no Manaus Free Trade Zone, people will start exploring the forest. I think this is an obvious question, ”he declared.

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