New ceiling for microentrepreneurs will cost R$4 billion, minister tells CNN

The Minister of Entrepreneurship, Paulo Pereira (PSB), stated in an interview with CNN Brasil that the increase in the revenue ceiling for MEIs (Individual Microentrepreneurs) will cost R$4 billion to the public coffers in two years.

President Luiz Inácio Lula da Silva (PT) sent to the National Congress on Tuesday (29) a PLP (complementary bill) that progressively readjusts the annual limit, which goes from R$81 thousand to R$110 thousand in 2027 and to R$140 thousand for 2028. MEIs will also be able to hire up to two employees.

With this change, a series of companies will be able to join the category - which pays less tax -, which will generate a tax waiver.

The government's economic team feared the advancement of PLP 108/2021 in Congress. The text, in addition to readjusting the MEI ceiling, corrected the Simples Nacional revenue limit. The Ministry of Finance estimated that the measure would cost R$50 billion to the treasury. The project itself meets the demand of the category, corrects a distortion and contains the fiscal impact, in the assessment of federal management.

"The MEI ceiling had not been updated for almost ten years, since 2018. And President Lula had determined that there was a solution. But the president is committed to the country's fiscal health, so we need time to build the response," he said.

"The measure will cost R$ 2 billion per year, but the most important thing is that it will be done without any tax increase. So we will not cut from our own meat, Brazilian society will not pay more taxes to allow this arrangement. It is a text that fits in the Budget", he added.

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Source: CNN