Operating a business in Brazil is a tough task for many entrepreneurs. They are complaining about the high taxes demanded by the government, and for international companies, they tend to move their businesses away from Brazil, choosing a more suitable location where they can operate without the need to pay excessive tax rates. Flavio Maluf, a successful Brazilian entrepreneur, shares his opinion about the high tax rates in the country. He is the current president of the Eucatex Group, known for their hardware, construction, and wooden products. View crunchbase.com to learn more
Flavio Maluf appealed to the Brazilian government to relax their tax rates and consider the condition of the business people operating in the country. He stated that if the government did not do anything about the country’s high tax rates, their neighboring countries would benefit from the multinational companies leaving the country. It would result in an economic crisis in the country, leaving millions of people without a job. For Flavio Maluf, the issue should be addressed as early as today, and the government should create plans that would transform the country into a significant place to invest in.
Lowering down tax rates would be ideal especially for foreign investors. However, the Brazilian government would not want to trim their taxes down, because it would significantly affect the public funds. Flavio Maluf suggested that if the government did not want to cut their tax rates down, they would have to provide incentives to companies operating in the country. What he is lobbying for would be the funding of other government projects through the assistance provided by the private businesses.
This would give the companies a chance to have their reputation boosted, and at the same time, they will be able to help the government with their goal of achieving a highly desirable society. However, the government of Brazil stated that helping them with their projects would not provide businesses with an assurance that they would no longer be required to pay their taxes. Flavio Maluf, on the other hand, stated that the government should think about their decision because they could lose their investors if no incentives are given.