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Flavio Maluf on Brazil’s New Fiscal Incentive Policy

It’s obvious that if businesses can’t turn a profit, the economy won’t grow. After all, investors have no reason to part with their money without a reasonable chance of seeing a return. However, historically many governments have failed to see it that way, and have refused to create and foster incentives to support business growth.

According to Flavio Maluf, Brazil is one of those countries which historically just hasn’t seen the light. The Brazilian executive believes that oppressive tax structure and the cocky, anti-growth attitude of the country’s politicians and bureaucrats has held the giant back, despite its growth during the 2000s. Learn more about Flavio Maluf at InfoMoney

Still, Maluf is optimistic about a new policy proposal, the Fiscal Incentive Bill. This law would allow companies to redirect a portion of their tax liability directly to social causes and programs.

You might be asking what the benefit of this measure would be, especially if there is no tax break. Even though the company wouldn’t pay less under this measure, Flavio Maluf argues that Brazilian firms would derive a lot of value from building up their brands.

In other words, when corporations pay their taxes, there is no way to trace the good that money does back to their tax contribution. On the contrary, Brazilians feel like tax revenues just go down the drain due to rampant corruption. But under the new law, people will be able to see how a company’s social contributions make a difference in their everyday lives.

Flavio Maluf is the CEO of Eucatex, a leader in the Brazilian construction sector. He is also at the helm of Grandfood, one of the country’s major manufacturers of pet-related products. Prior to joining the family business, he studied mechanical engineering at FAAP University in Sao Paulo.

More information about Flavio Maluf: https://www.crunchbase.com/person/flavio-maluf