When the government imposes a high tax on the businesses, entrepreneurs are highly burdened; hence tax incentives should be considered. Flavio Maluf, the CEO and president of the Eucatex, a wood company, has a lot of experience in entrepreneurship acquired while working for the trade industry, disclosed some suggestions helpful in minimizing tax impacts to business companies. He has a degree in mechanical engineering which he attained from Armando AlvaresPenteado Foundation since he had a passion for being an entrepreneur he decided to pursue a fulltime business course to fulfill his dream. Flavio Maluf has a negative view on the method of taxation in the Brazil government he, therefore, discusses various proposals which should be taken into consideration to benefit both the government and the business people paying tax. Read more about Flavio at terra.com
Fiscal incentive laws should be put in place to allow the companies to direct their funds to the program of choices such as social, health and cultural fields. The companies` funds will contribute to the economic growth of Brazil. The image of the company will also improve as the members of the society will realize the contribution made by the company unlike when the money is directed to the government. This method of paying the tax can be used as a marketing strategy by the company to attract more able customers hence increasing sales.
Flavio also suggests that the government can decide to impose the tax on the company based on the type of product they deal with or the industry they are. When the company reinvests in the industry it will expand leading to more employment opportunities in the company.
Flavio Maluf believes that since the path to entrepreneurship is not always a walk in the park, entrepreneurs must have high ambition. They should also be able to identify any hindrance for their business and set the remedies to the challenges.