Corporate income taxation has a direct influence on the quantity as well as the type of entrepreneurship, which in turn has a direct impact on the economic development of a country. In Brazil especially, there is empirical evidence supporting the fact that higher corporate income rates of tax have an adverse impact on the density of businesses alongside entrepreneurship entry rates. Moreover, higher corporate tax rates increase the capital of emerging firms. While policymakers are now delving into proper advocating for the cut down of tax rates to favor new entrepreneurship entries, Flavio Maluf is also motivated to join them in their quest. Read more about Flavio at terra.com
In Maluf’s perspective, multiple entrepreneurs find it challenging to maintain their businesses in the industry because of the rising tax burdens. Even so, he reiterates that companies that decide to delve into a new direction where tax incentives are majorly incorporated to relieve businesses of the entire tax burden. As the chief executive officer and head cheerleader of Eucatex, Flavio Maluf is confident that his input in this tax issue will influence the government’s decision to implement tax incentives for entrepreneurs.
What about the Proposal?
Moreover, the proposal for Fiscal Tax Incentive Laws gives companies the chance to channel some of their revenue to various tax projects guarded by regulations. Furthermore, these regulations may be not only technological but also social, cultural and sporting. This way, the money will be used to develop societies and sports teams instead of the government. Over and above this, the dominant idea lies in fostering Brazil’s economic and social development. While this is what Maluf is advocating for, it does not mean that businesses will not part with their taxes. On the contrary, what it indeed implies is that companies will enjoy standardized tax rates.
Who is Maluf?
Flavio Maluf is a revered businessman who chairs Eucatex, a prominent manufacturing company in Brazil. Besides, he talks to entrepreneurs about business and how to succeed. More than that, he highlights various risks in firms. As the head of this manufacturing company, Maluf is always well versed with the impending market shifts in the industry. He keeps watching the trends in business because he is the head cheerleader of the firm. It is therefore correct to conclude that Maluf is not only observant but also keen to ensure that the business maintains a particular track record of performance. Visit https://pt.wikipedia.org/wiki/Fl%C3%A1vio_Maluf