Manaus Free Zone. Disclosure/Secom-AM The Federal Court dismissed the action filed by the Federation of Industries of the State of São Paulo (Fiesp) that attempted to suspend tax benefits granted to the Manaus Free Trade Zone (ZFM) through the tax reform. With the decision, signed this Wednesday (10), the planned incentives remain in force. The action questioned legislation provisions that created presumed Goods and Services Tax (IBS) and Goods and Services Contribution (CBS) credits for companies located in the Free Zone. Fiesp claimed that the benefits would increase the competitive advantage of industries in the North region in relation to the rest of the country and could cause the migration of companies to Amazonas. In his sentence, federal judge Náiber Pontes de Almeida did not analyze the merits of the discussion. The judge understood that the public civil action presented by the entity was not the appropriate legal instrument to question the constitutionality of the rule that creates the benefits for the ZFM. 📲 Join the g1 AM channel on WhatsApp According to him, the request would have a similar effect to that of a Direct Action of Unconstitutionality (ADI), whose analysis is the exclusive responsibility of the Federal Supreme Court (STF). The judge also considered that the action dealt with tax matters. According to the decision, Brazilian legislation does not allow the use of public civil action to contest tax benefits granted by law. For this reason, the process was closed. Decision generates reaction This Wednesday's decision generated a reaction from entities linked to the sector and politicians. On social media, the Amazonas Commercial Association (ACA) echoed the closure of the action and praised the participation of the agency's lawyers in the process in defense of the Free Zone. Senator Eduardo Braga classified the end of the process as an important victory and highlighted the union between trade entities for the achievement. "A victory for everyone. We worked together and together we beat the powerful Fiesp [...] First victory, first battle, of the many rounds we have had over these 50 years", he stated. Impacts of tax reform in the Manaus Free Zone