Taxes are mainly the backbone for developing nation as they give leeway to economic, social and cultural development. However, a bad tax policy formulated by any government may, in turn, scare away possible developers and investors as it would call for a ballooning expenditure, therefore, reducing the profit margin, which is the absolute goal for any business.
Maluf, who has been the Chief Executive Officer and president of the prestigious Eucatex Limited argues that the high taxes imposed on businesses in Brazil by the government is an uphill task for these entrepreneurs and they must devise a favorable tax policy for all. In his counsel, the government can tackle this challenge by offering incentives to companies. Read more about FlavioMaluf at Wikipedia.
In a bid to abet social, economic and cultural development within the country, the government gives the companies a free hand in having an unswerving control of directing taxes to community projects rather than paying directly to the government. The ventures span from sporting activities, health care programs and scientific research undertakings.
Though the tax incentive program does not give companies a full waiver on taxes, it builds up the company’s reputation by creating a connotation between them and possible clients. This may, in turn, reduce spending by cutting the enormous costs of advertising their products.
To develop remote or underdeveloped areas, the government introduces regional tax incentives. Taxes are lowered for companies setting their base in regions which are supposedly lagging behind in development and social amenities. One of the beneficiaries of this policy is the Manaus Free Zone, Brazil, founded in 1957 with a vision to develop the Western Amazon.
The most effective tax policy incorporates the reduction or exemption of companies from paying taxes in relation to their economic undertakings. This enables them to direct their might and finances to increase the quality and quantity of their services, therefore, creating jobs for her people.
An overview of Flavio Maluf’s background
Though born to wealthy and politically powerful parents, Flavio Maluf’s entrepreneurial success is however not attributed to his family wealth. He has worked extra hard to see his career grow from nothing to something.
Flavio acquired a degree in Mechanical Engineering from Armando AlvaresPentrado Foundation in the outskirts of Sao Paulo in Brazil, but his desire for business saw him enroll in the prestigious University of New York where he emerged with a Degree in Business Administration.
Flavio Maluf was absorbed into Eucatex as the president which his managerial and leadership skills are leading to a total transformation of the company. Visit: https://www.terra.com.br/noticias/dino/conheca-com-o-empresario-flavio-maluf-alguns-mitos-e-verdades-a-respeito-de-ser-um-empreendedor,21991ecd7b49587604a2d972ecada3b6lz1vsqwr.html