Flavio Maluf ranks as one of the most prominent businessmen in Brazilian manufacturing. As a head of one of the most important manufacturing companies in the country, he has seen, firsthand, the incredible waste that results from poorly designed tax policies, especially within the context of a corrupt government like the one that has plagued Brazil for generations.
Flavio Maluf first inherited the company called Eucatex from his father more than three decades ago. Since then, he has been able to build it into one of the most formidable manufacturing firms in all of Latin America. The company has innovated dozens of different applications for the eucalyptus plant and its extracts, branching off into the production of high-end laminates, furniture and even automotive parts. Today, the company ranks among the most important diversified manufacturing businesses in the country and accounts for tens of thousands of jobs in the Brazilian states in which it is located. Learn more about Flavio Maluf at InfoMoney
But throughout the course of his career, Maluf came to realize just how severe the punitive effects of high levels of taxation are on small business owners. Maluf says that small business is one of the most important drivers of economic activity that any nation can possibly have. For this reason, he believes that anything that helps small businesses in the best interest of Brazil over the long term.
Maluf says that many small business owners do not feel that they’re being treated fairly. These feelings are magnified in the presence of the endemic corruption that has plagued the Brazilian government at all levels over the past few decades. While large corporations can hire the necessary lawyers, accountants and other experts that are necessary to offshore their operations and shelter themselves from the worst of the tax burden, small businesses are often unable to escape using these same means. Ultimately, says Maluf, this gives large, monopolistic corporations a gigantic competitive advantage and unnecessarily penalizes small businesses for nothing more than not having the adequate capital to compete with their larger peers.
Maluf believes that small businesses should be able to retain as much of their profits as possible.