In the recent years, maintaining a live business in Brazil has proved itself an uphill task, primarily to due to the high taxes the government demands. This has seen most investors shy away from the business world and entrepreneurs closing up shop. But Flavio Maluf, a renowned businessman, believes there is still hope for these businesses, at least with the passage of the of the proposed fiscal incentive laws. Follow Flavio on Twitter
Reviving the economy
The new tax systems propose that instead of paying all the tax obligations to the government, businesses be allowed to channel some of these to community projects. This, however, shouldn’t be misinterpreted as tax avoidance. Rather it is a redirection of the country’s resources where businesses calculate the tax owed to the government and split it into two, paying one half of the tax owed directly to the government coffers while using the rest to advance community projects.
According to Flavio Maluf, this may include funding such projects as technological advancements, research, and improving health h programs, sponsoring cultural, social and even sporting events. This would result in having more money in circulation that would then result in a ripple effect that resuscitates the nation’s dying economy.
As the tax incentive proposals would suggest, the government might al consider adopting other incentives measures that help revive the economy. This includes tax exemption, reduction, and compensation for different industry players. Flavio Maluf particularly believes that upcoming industries like technology, aerospace, infrastructure and export industries should be targeted by these incentives to help them flourish.
The accomplished businessman would also suggest that other incentive measures that don’t necessarily stem from the national government would also go a long way in feeding development. These may include incentives granted by public administration to businesses operating in a particular field. It would also encompass municipal incentives by local authorities to encourage businesses to set up in their municipalities as well as regional incentives to spice up growth in marginalized areas.
About Businessman Flavio Maluf
Flavio is the current President of Eucatex Group, a family-owned business empire operating Brazil. The company has deep interests in different industries with the real estate and construction industries playing as their favorite. Maluf is also an avid entrepreneur, founder and President of Grand Food companies. Learn more: http://blogdoronco.blogspot.com/2014/05/empresario-flavio-maluf-prestigia.html