Brazil's Chamber postpones vote on raising MEI revenue ceiling

The Chamber of Deputies in Brazil has delayed the vote on a proposal to increase the annual revenue limit for Microentrepreneur Individual (MEI) registrations. The postponement stems from a disagreement with the Ministry of Finance over revisions to the Simples tax brackets, with the vote now scheduled for after the parliamentary recess in August.

The bill would raise the MEI ceiling from the current R$ 81,000 to R$ 110,000 and later to R$ 140,000 in the coming years. Government estimates suggest the higher limit could cost up to R$ 8.1 billion annually. Advocates argue the change would allow MEIs to hire up to two employees and better reflect rising operating costs, while critics warn it may push businesses into more complex tax regimes without adequate support. “The point is not just to allow the MEI to invoice more. The challenge is to ensure they can grow without being forced abruptly into a structure they can’t sustain,” said Fábio Saraiva, president of the National Confederation of Young Entrepreneurs (CONAJE). The proposal still requires approval by the Senate.