According to Flavio Maluf, One of the challenges that the investment fraternity face in Brazil is the high rate of taxation. He opines that if companies stopped to think and consider options, there are ways that they can get a breather. Flavio Maluf is the current President of Eucatex. Visit ideamensch.com to learn more
Angling to Gain from the Proposed Legislation
Flavio Maluf says that the proposal that seeks to establish Fiscal Incentive Laws is the only way out for companies that feel pressed to the wall regarding the tax burden. The laws, if adopted, can offer an opportunity for such companies to channel the monies that they pay in taxes to the projects that the legislation contemplates. The projects in question include social, sporting, cultural, technological, health and scientific programs. The law provides an opportunity for the companies to channel what could have been taxed to Corporate Social Responsibility projects, hence still benefitting society. The principle behind the proposed legislation is to enhance the social and economic growth in the country.
The Import of the Proposed Laws
According to Flavio Maluf, the new laws in the pipeline do not mean that companies will have the freedom to keep the money that could have gone to taxes for themselves. He points out that the main goal of the proposed law is to enable companies to foster a positive image of themselves to the public, hence improve its social relations profile. In effect, Maluf says that the laws will help the companies to save a significant amount of money that they could have directed to advertising. Flavio Maluf started working with the Trade Department at Eucarex. He was later moved to the Industrial Department where he worked until 1996. He was later promoted to the management levels. He was promoted to the current President position following the agreement of all stakeholders in the family-dominated business.
Flavio, further, opines that there are regional tax rebates and incentives in the proposed law. The incentive is aimed at benefitting companies that establish their business in certain operational locations. The Manaus Free Zone, founded in 1957, is an example of such regionally tied incentives for companies. The law is meant to help to develop the western region. Visit: https://www.crunchbase.com/person/flavio-maluf