Category Archives: tax

Flavio Maluf: How Can The Government Society And Business Mutually Benefit From Tax Incentives?

Fiscal policies all over the world are used to help boost economic and social development by individual countries. In Brazil, however, several pieces of tax policies passed in the recent past have not only proved retrogressive but also disrupt the balance in an economic ecosystem and in effect discourage entrepreneurship. This was Flavio Maluf’s sentiments when expressing support for the proposed tax incentives that encourage the diversion of taxes towards community projects.

According to Maluf, supporting this tax incentive system doesn’t imply boycotting taxes in their entirety by businesses. Rather, the proposed policy suggests that businesses only part of their taxes due to the government while using the rest to advance sensitive community projects. But what does this prove beneficial to the government, the society, and even the national economy? Read more about Flavio at terra.com

Benefits to the government

Flavio Maluf believes that every government should be future-oriented and that by passing favorable fiscal policies that allow entrepreneurs to invest and businesses to flourish, it creates a bigger revenue tap in the future. The Eucatex group president is of the opinion that instead of passing repressive fiscal policies, the government should concentrate on incentivizing the business world. Having businesses take part in advancing community projects also helps relieve the government some responsibilities.

Benefits to the community

The proposed tax incentives allow businesses to use part of the tax to support community projects means that societies don’t always have to be at the mercies of the ruling elite. It also implies some neglected community activities like sports, culture, and institutional research would be revived through corporate sponsorships. Most importantly, such tax incentives as exempted taxes and refunds as a result of settling businesses in certain regions would effectively improve the marginalized parts of the country like Western Amazon.

Benefits to the economy

Flavio Maluf argues that tax incentives result in more money for the businesses to spend on the economy and thus more entrepreneurial opportunities. Favorable policies also encourage the setting up of international businesses that spur multi-industry growth. This not only translates to the expansion of the economy but also creates ripple effects in the economy with a common bottom line of improving the living standards in the country.

Read more: https://pt.wikipedia.org/wiki/Fl%C3%A1vio_Maluf