The Palácio do Planalto is attempting to accelerate a legislative vote on a bill to raise the annual revenue limit for Brazil's micro-entrepreneur program [1].
Increasing the ceiling for the Microempreendedor Individual (MEI) program would allow more small business owners to remain in a simplified tax bracket. This move is seen as a way to support small-scale entrepreneurs, while potentially shifting the broader legislative debate regarding the Simples Nacional tax system to a secondary priority [1, 2].
President Luiz Inácio Lula da Silva's administration sent the project to Congress on Monday, June 29, 2026 [3]. The current annual revenue limit for MEIs is R$ 81,000 [4].
There are conflicting reports regarding the proposed new ceiling. Some sources said the government is seeking a limit of R$ 110,000 [4], while other reports place the proposed figure higher at R$ 140,000 [2].
Despite the executive branch's push to unlock the vote, the Chamber of Deputies, led by President Hugo Motta (Republicanos-PB), may delay the process. Some reports said the vote could be postponed until after the legislative recess in July 2026 [2, 5].
The administration continues to negotiate with the Chamber to avoid this delay. The tension reflects a broader struggle between the executive branch's desire for rapid implementation and the legislative calendar's constraints [1, 6].
“The Palácio do Planalto is attempting to accelerate a legislative vote on a bill to raise the annual revenue limit for Brazil's micro-entrepreneur program.”
The push to raise the MEI ceiling represents an effort to modernize Brazil's tax thresholds for the smallest businesses, which have struggled to keep pace with inflation. However, the disagreement over the exact numerical limit and the timing of the vote suggests a lack of alignment between the executive branch and the Chamber of Deputies. If the vote is postponed, it may signal that the government lacks the necessary legislative momentum to implement these changes before the next fiscal cycle.
