Government estimates tax waiver of R$50 billion with increase in the MEI limit
The Ministry of Finance estimates a tax waiver of R$50 billion per year with the approval of Complementary Bill 108/2021, which increases the revenue ceiling for MEI (individual microentrepreneurs). Despite the impact on public accounts, the proposal has support from the federal government.
The PLP has already been approved by the Senate and is now awaiting analysis by the Chamber of Deputies. In the House, the text is being reported by deputy Jorge Goetten (Republicanos-SC).
The text expands the billing text to R$ 130 thousand and authorizes individual microentrepreneurs to hire up to two employees, instead of just one, as current legislation allows. Currently, MEI's revenue limit is R$81,000 per year.
The last update of the MEI ceiling occurred in 2018. Data from Sebrae indicate that more than 570 thousand MEIs were noncompliant at the beginning of 2025 for not complying with the limit range.
In addition to the project that increases MEI revenue, there are eight other texts being processed in the National Congress that have raised a warning signal in the economic team. The federal government estimates a fiscal impact of R$111 billion per year if the proposals are approved.
The change in the revenue range has the largest estimated fiscal impact among the projects under analysis. See:
- PL 5,122/2023, which deals with the renegotiation of debts with equalization of interest rates by the Union: up to R$140 billion in 13 years or around R$10.7 billion per year;
- PLP 108/2021, which raises the ceiling of Simples Nacional: revenue waiver of R$50 billion per year;
- PEC 231/2019, which expands the Municipal Participation Fund: reduces the Union's net revenues by R$10 billion annually;
- PEC 5/2023, relating to the expansion of tax immunity for religious temples: has a minimum cost estimated at R$10 billion per year;
- PLP 11/2026, which creates benefits for non-profit entities: waiver of R$1 billion per year;
- PEC 383/2017, which links resources to the Unified Social Assistance System: generates additional average expenditure of R$ 9 billion per year, the total increase between 2026 and 2030;
- PL 4,728/2020, which establishes a new Special Tax Regularization Program: has an average cost of R$ 8.8 billion annually; union expenditure of R$ 8.4 billion per year, not counting states, municipalities and the Ebserh network;
- PEC 14/2021, which creates differentiated retirement for community health agents and those fighting endemic diseases: actuarial deficit of R$ 3 billion per year.
According to the federal government, the estimates combine revenue waivers and mandatory expenses, including equalization of interest rates and social security impacts, which directly affect public accounts.
The economic team also informed that the annual averages assume a uniform distribution of costs, without monetary updating, so that the effective impact in each year may be greater.
Source: CNN