Flavio Maluf On How Tax Incentives Can Benefit New Businesses
Success is an uphill climb for many entrepreneurs in Brazil. Entrepreneurs face a high rate of failure due to several reasons. One of the main reasons is the high tax burdens imposed by the government. However, Flavio Maluf does have some suggestions on how to minimize the impact of taxes on Brazilian businesses. These taxes take into consideration of tax incentives.
Flavio Maluf proposes the Fiscal Inventive Laws. This will allow companies to direct a portion their taxes to social, health and cultural programs. Instead of the money heading directly to the government, companies are able to choose programs that focus on improving the social and economic development of Brazil. Read more articles by Flavio Maluf at Business and Economics.
This approach provides a twofold benefit to the companies. Instead of directing the funds directly to the government, companies can strategically direct their funds. The funds have a positive impact socially, while improving the company’s image among the public. This is a unique marketing strategy that can be used to attract additional customers.
The tax proposal also has an additional benefit according to Flavio Maluf. The government can grant tax incentives to specific companies based on their industry. This will allow certain industries to flourish by decreasing their tax burden. The incentive can be applied in several ways. Including tax reduction, compensation and exemption. As a result, companies can reinvest within their organization as well as create jobs. Industries such as information technology, aerospace and agriculture can greatly benefit from the incentive.
In addition to the tax incentive, Maluf also believes that entrepreneurs must have a high amount of ambition. Especially since the path to entrepreneurship is not a smooth road. Entrepreneurs must recognize any limitations that may prevent success as well as correctly identifying their strengths.
Flavio Maluf is the CEO and VP president of Eucatex. Maluf has a background working in the trade industry prior to joining Eucatex. After joining the company in 1987, he quickly ascended to the position of President due to outstanding management skills. Flavio is a graduate of (AmandoAlvaresPenteado Foundation) FAAP where he majored in Mechanical Engineering.