The first measure of Brazil’s tax burden was established in 1974. As a result, the 13.5% GDP was effective immediately. Since then, the actual measure has grown gradually. However, according to the state’s Internal Revenue Service the tax revenue burden was at 19% as of 1965. For that reason, entrepreneurs experience difficulties when it comes to establishing strong businesses in Brazil. Even so, Flavio Maluf of Eucatex has taken it upon himself to address the impending tax burden and possibly influence the government to consider exempting entrepreneurs from these destructive burdens that prevent entrepreneurs from investing in more profitable businesses. Read more on Business and Economics about Flavio Maluf
The Background Look
According to Flavio Maluf, the idea of Fiscal Tax Incentives Laws is there to foster significant social, economic growth in Brazil. Therefore, while the unreasonable tax burdens can interfere with entrepreneurs’ chances of making it in other business ventures, there are a few tactics that can help Brazilian’s enjoy the relief of tax incentives.
The Fiscal Incentive Law
Moreover, Maluf states that the new Fiscal Incentive Law is there to give companies the chance to direct some of their revenues made for taxes to constructive projects. Besides, the law will offer a new pathway for entrepreneurs to focus on societal development projects like technology, cultural projects, scientific research as well as useful health programs. For instance, through this path, instead of spending the revenues on the Brazilian government, the money will be spent on beneficial society projects. Finally, in Maluf’s perspective, these incentives are to be utilized in enhancing the development of the country.
Regional Tax Incentives
Besides, it is vital to note that Brazil has instigated regional tax incentives in some regions. It is a policy granted to specific areas. For instance, one of the most significant areas that this tax incentive is acceptable is the Manaus Free Zone. Similarly, in this case, the measure of the incentive is promoting Western Amazon’s development.
In addition, Flavio Maluf is the chief executive officer of Eucatex Group. Therefore, he is in charge of the company and its affiliates. Aside from that, he is also the chairman of the board of directors of the same companies. Additionally, when he is out of office serving at Eucatex Group, he discusses business and the best strategies to consider working with for entrepreneurs to succeed. Visit https://br.linkedin.com/in/flavio-maluf-172147b3