Flavio Maluf is one of the most successful businessmen in the country of Brazil. Having inherited the giant of eucalyptus processing and industrial applications, Eucatex, he has been able to grow the company into one of the largest and most important manufacturers of building supplies, furniture and other industrial processes in the entire country.
Recently, Flavio Maluf sat down with a prominent business magazine to share some of his thoughts on the future of the Brazilian economy. He said that corruption is an ongoing and serious problem in the country. As a result of so much graft, Maluf believes that it will be difficult for the country to continue to maintain the high levels of taxes it currently imposes on individuals and businesses. View flaviomalufofficial.com to know more.
Maluf says that many Brazilian businesses and entrepreneurs have no incentive whatsoever to comply with the nation’s tax laws. Instead, these companies are seeking ways to offshore their operations and center there baking activities and other financial operations in jurisdictions that are far friendlier to business in general. This is causing a massive amount of capital flight from Brazil, a situation that could grow dire if the trend continues on its current course.
Maluf believes that a simple solution to this problem is to allow business owners to retain far more of their hard-earned money that they can then directly invest in the community and in their business operations. Maluf suggests that the Brazilian government is so corrupt and so inept in the way in which it spends tax money that there is virtually no cogent argument for confiscatory tax policies. He says that there is little doubt that business owners being able to retain the capital that would otherwise go to wasteful government programs, graft and outright theft is a far more effective way to allocate capital and grow the economy as a whole.
Some of these specific suggestions that Flavio Maluf offers is to replicate the success of the Zona Franca de Manuas, a zone was established specifically to allow businesses to retain the capital needed to make critical investments in their companies and the community around them.