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Brazilian President Dilma Rousseff has signed a bill extending for 50 more years tax incentives granted in Amazonas state capital Manaus' free trade zone, federal news agency Agência Brasil reported.
The bill is for a proposed constitutional adjustment, known as PEC, as it is Brazil's constitution that governs the Manaus issue.
Under the terms of current law, Manaus' tax breaks expire in 2023 - after being extended once by former President Luiz Inácio Lula da Silva.
Besides extending the tax breaks' term, the bill also expands the free trade zone to Manaus' entire metropolitan area. The measure still needs to congressional approval.
The Manaus free trade zone offers companies in the region full exemption from federal import tax II and export tax IE, cuts on the ICMS interstate sales tax and 10 years' exemption from the IPTU municipal tax.
The industrial hub includes companies from the electronics, mechanical and metallurgical segments.
Recently, three companies announced their intention to set up tablet production in the region - local IT company Digibras, as well as Greenworld and Samsung. The latter has already been granted value-added tax (ICMS) exemptions by the state government, and must now be approved by Suframa, the free trade zone management company in Manaus. The other two projects have already been greenlighted.