Manaus Free Trade Zone Operations Shrunk In 2015
by Mike Godfrey, Lowtax.net, Washington
10 February, 2016
The Manaus Free Trade Zone in Brazil has reported that the revenues of its industrial park fell in 2015, as a result of Brazil's weak economy.
Revenues of its industrial park reached BRL78.4bn (USD20.1bn) in 2015. The figure was down 10.21 percent from 2014 in Brazilian real terms, but in US dollar terms it was down 35.75 percent, SUFRAMA said. The free zone noted that the dollar-real exchange rate went from USD1 to BRL2.35 in 2014 to BRL3.32 in 2015.
Exports from the industrial park totaled BRL2.04bn between January and December last year, an increase of 21.26 percent year-on-year. However, 95 percent of products manufactured in the free zone are sold to the domestic market and head of SUFRAMA, Rebecca Garcia, explained that the poor economic conditions in Brazil had impacted businesses in the zone.
The electronics sector accounted for the largest share of overall revenue (29.59 percent), followed by the two-wheeled vehicle sector (16.73 percent), and the IT sector (15.55 percent).
Companies established in SUFRAMA enjoy a number of tax incentives, including exemption from import duties and export duties, and exemption from the PIS/PASEP and COFINS social security contributions.
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