President Luiz Inácio Lula da Silva delivered a proposal to raise the revenue ceiling for individual micro-entrepreneurs (MEI) to Chamber President Hugo Motta (Republicanos-PB) on Monday, June 29, 2024 [1].
The move aims to allow micro-entrepreneurs to expand their operations and hire more staff by increasing the income threshold they can earn before transitioning to a different tax category.
The administration is treating the proposal as a “new PEC 6x1,” Larissa Rodrigues, a CNN Brasil analyst, said [1]. This framing is intended to utilize the momentum of the already-approved PEC 6x1 to move the project forward quickly through the legislative process.
“We will schedule the project with the same text as PEC 6x1 to unblock the Chamber's agenda,” Motta said [3].
Proposed revenue ceilings vary across reports. One plan suggests raising the limit to R$ 110,000 in 2027, and R$ 140,000 in 2028 [1]. However, other government evaluations have considered a flat increase to R$ 120,000 [3].
There is conflicting information regarding the project's relator. Some reports identify Rep. Leo Prates (Republicanos-BA) as the designated relator [3], while other sources name Rep. Jorge Goetten (Republicanos-SC) for the role [2].
The government is pushing for the relator to present an opinion on the new ceiling before the legislative recess begins [2]. This timeline underscores the administration's urgency to provide financial relief, and growth opportunities, for the country's smallest business owners.
““O Planalto trata o aumento do MEI como a ‘nova PEC 6x1’.””
By linking the MEI ceiling increase to the legislative framework of the PEC 6x1, the Lula administration is attempting to bypass typical bureaucratic delays in the Chamber of Deputies. If passed, the phased increase in revenue limits would reduce the tax burden for growing micro-businesses, potentially incentivizing formal employment in the informal sector, though the exact financial thresholds remain subject to final legislative negotiation.
