You probably know that Brazil is a hub of economic growth. What you may not be aware of is the fact entrepreneurs are not the happiest people in Brazil because of the rising tax burdens. For that reason, it has become too complicated for them to maintain healthy businesses. Nevertheless, all is not lost because Flavio Maluf, one of Brazil’s most admired entrepreneurs has some insight into what can be done to solve the situation. For starters, he thinks that the government should come in and help these entrepreneurs by issuing tax incentives to relieve them of their burdens.
As the president of Eucatex stresses it, tax incentives will allow Brazilian entrepreneurs to focus on other projects that are more helpful to the society. Some of these projects include sports, scientific research, in addition to healthcare programs, social and cultural projects. With such projects, the money will be directed to the benefit of the society instead of the entire amount being channeled to the government. The primary objective of this idea is to promote economic as well as social development in the state. Read more about Flavio at terra.com
Although tax incentives will work well for most Brazilian entrepreneurs, it is not a way out from paying taxes. In fact, it should not be an excuse for entrepreneurs to evade tax in any way. The only advantage of this tax incentive is making sure that the money is channeled to the right docket of use. For instance, with the money sent to a sports project, the youth shall be empowered to pursue their dreams since they are receiving maximum support from the community.
In addition to these suggestions, it is critical to note that there are many types of tax incentives including regional tax. With these incentives, companies in a specified location are entitled to incentives. For instance, Manaus Free Zone is one geographical area that is largely enjoying the tax incentives programs.
Mr. Flavio Maluf started his career in 1987. First working at Eucatex Group, he has been very instrumental in helping entrepreneurs to make the right decision in regards to handling their businesses.