The governor of Amazonas has filed suit in the Supreme Court (STF) asking them to declare the unconstitutionality of the rules issued by the government of Sao Paulo that encourage the production of tablets, laptop computers. According to the governor of Amazonas, Omar Aziz, these tax incentives put the Manaus Free Zone at risk, by setting an unequal competition between the states.

Aziz asks for an injunction to suspend devices from a law created in 1989 and two decrees, one from 2000 and another from this year. He says that the rules allow for a reduction on the tax refereing to the Circulation of Goods and Services (ICMS), which is set by each state, to zero if the product is manufactured in Sao Paulo, while the tax rate for production in the Zona Franca de Manaus (ZFM) is 12 %.

For the governor of Amazonas, tax competition between states is against the Constitution, which sought to address the regional inequalities by creating incentives for commercial development in the North.

SOURCE

Agency Brazil

Lana Cristina - Issue

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Links referenciados

Imposto sobre Circulação de Mercadorias e Serviços
pt.wikipedia.org/wiki/Imposto_sobre_Circ
ulação_de_Mercadorias_e_Serviços

Supremo Tribunal Federal
www.stf.gov.br

Agência Brasil
www.agenciabrasil.gov.br