Government will propose raising the MEI limit to R$130,000, staggered until 2028, but avoids correcting other Simples bands, says minister

The Minister of Finance, Dario Durigan, stated this Friday (19) that the government will send a bill to the National Congress to correct the limit for individual microentrepreneurs from R$ 81 thousand to a value close to R$ 130 thousand by 2028.
But, he ruled out the possibility of correcting the other limits of Simples Nacional. MEI, not for 2026, but for the coming years (...) Let's do it in dialogue with Congress. We are evaluating the limit, for what dose the fiscal impact, of having an increase in 2027 and 2028 so that it reaches something like R$ 130 thousand at the end of the process", said Durigan, in an interview with Jota.
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This week, during a public hearing in the Chamber of Deputies, he had already confirmed that the government would make a proposal for a correct the limit for individual microentrepreneurs, but did not mention values. He also informed that the economic area agrees that the MEI can hire one more employee.
Under the current rules, micro-entrepreneurs can hire up to one employee, and must have an annual turnover of up to R$81 thousand (read more below).
Bill 108, of 2021, which has already been approved by the Senate and is now being analyzed in the Chamber, proposes increasing the MEI limit from R$81 thousand to up to R$130 thousand per year, also allowing the hiring of one more employee.
This project, however, was listed by the economic team among the so-called "bomb agendas", that is, bills or a Legislative matter that creates high-value expenses, putting pressure on public coffers, or reducing revenue.
This would even be the main bomb agenda cited by the federal government, with the impact of a loss of R$50 billion per year in federal revenue, out of a total of R$111 billion in nine projects.
Simples in other countries
Created in 2006, Simples aims to encourage small businesses. It consists of the unification of some taxes with more favorable rates for the entrepreneur.
The tax reform on consumption, approved in 2023, did not change the limits of classification of Simples and MEI companies.
Currently, the following can join Simples:
individual micro-entrepreneur who earns up to R$81 thousand per year;
self-employed cargo transporter who earns up to R$251.6 thousand per year;
micro-enterprises with up to R$360 thousand per year;
small-sized companies with up to R$4.8 million per year;
➡According to estimates from the Federal Revenue Service, Simples Nacional should generate a revenue waiver of R$136 billion this year, around 22% of the total R$612.84 billion in benefits expected for 2026. This is the main program that generates loss of revenue for the government.
➡In 2022, auditor Fernando Mombelli, from the Federal Revenue, cited in the Chamber of Deputies the example of other countries with favored regimes for micro and small companies and their annual revenue limits.
Brazil = US$ 1 million (around R$ 5 million);
Canada = US$ 22.5 thousand;
Israel = US$ 26.5 thousand;
Portugal = US$ 11 thousand;
South Korea = US$ 48 thousand and
United Kingdom = US$ 104 thousand.
➡Studies point out that the tax relief offered to individual micro-entrepreneurs as one of the important sources of imbalance in Brazilian public accounts - which has shown repeated losses in recent years.

Source: G1