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[BUSINESS] · Brazil · 29 sources

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Brazil government announces debt relief and revenue limits for small businesses

The Brazilian government has implemented a series of legislative measures aimed at supporting micro-entrepreneurs and small businesses. President Luiz Inácio Lula da Silva sanctioned the Prospera MEI package, which progressively increases the annual revenue limit for Micro-Entrepreneurs (MEI) from R$ 81,000 to R$ 110,000 in 2027 and R$ 140,000 in 2028. The law also allows MEIs to hire up to two employees and provides an amnesty for approximately R$ 15.5 billion in accumulated tax debts.

Additionally, the Ministry of Entrepreneurship announced plans to send a bill to the Chamber of Deputies to forgive debts for companies in the events, bars, and restaurants sectors that are part of the Simples Nacional tax regime. This proposal follows the MEI model and aims to assist sectors heavily impacted in recent years. To further support small businesses, the government intends to announce a new BNDES financing line with subsidized interest rates.

These measures come amid intense political debate regarding Brazil's fiscal trajectory. Investors have noted that the gross government debt is projected to reach 82.9% of GDP by 2027, creating pressure for future administrations to balance economic growth with fiscal stability.

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BNDES · Brazil · Chamber of Deputies · Hugo Motta · Luiz Inácio Lula da Silva · Paulo Pereira

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