The Brazilian Chamber of Deputies is advancing a proposal to increase the annual gross revenue ceiling for Individual Microentrepreneurs (MEI) to R$ 130,000 [2].
This change aims to prevent small business owners from being forced into more expensive tax brackets due to inflation. Because the revenue limits have not been updated for years, many entrepreneurs find the current thresholds obsolete for today's market.
Deputy Jorge Goetten (Republicanos-SC), who serves as the relator of the special commission on the MEI limit update, said the proposal intends to align the ceiling with economic reality [1]. Under the current rules, the annual gross revenue limit is R$ 81,000 [1].
Beyond the immediate increase, the proposal introduces a mechanism for an automatic annual adjustment based on inflation [2]. This would remove the need for the National Congress to pass new legislation every few years to keep the limit relevant.
The measure is expected to move forward in the Chamber of Deputies in July 2026 [1]. The legislative process gained momentum after the Chamber approved an urgency regime for the bill on Tuesday, May 17, 2026 [3].
The proposal was processed through the Chamber of Deputies’ special commission on industry, commerce, and services [1]. By raising the threshold, the government seeks to relieve the financial and bureaucratic burden on the smallest business entities in the country.
“The proposal intends to align the ceiling with economic reality”
Updating the MEI limit is a critical fiscal adjustment for Brazil's informal and semi-formal economy. By indexing the revenue ceiling to inflation, the government reduces 'bracket creep,' where entrepreneurs appear wealthier in nominal terms but not in real purchasing power. If passed, this prevents a mass migration of small businesses into the more complex 'Microempresa' (ME) category, which carries higher tax burdens and stricter accounting requirements.
