BRAZIL'S SENATE BACKS EXTENSION FOR MANAUS FREE ZONE

Brasilia, July 21, 2014.- Brazil's Senate approved on July 16, 2014, legislation to extend the tax benefits of the Free Economic Zone of Manaus, located in the northern state of Amazonas, by 50 years.

Senators voted unanimously in favor of the bill in two rounds.

The Senate also approved reductions in the IPI tax for the computer products sector until 2029, and extensions for other free trade areas in the north of Brazil until 2050.

Senator Eduardo Braga, the former governor of Amazonas, said that the extension of the free zone will ensure more development, more investment, and more jobs in the western Amazon.

The free zone is home to around 600 high-tech companies in the electronics, IT, and vehicle production sectors, according to Braga. In 2013, these companies generated nearly 113,000 jobs and nearly USD90bn of revenue, he said.

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