Brazil's Lower House Advances Debt Relief for Micro-Entrepreneurs
Brazil's Chamber of Deputies voted 461 to 4 to approve debt relief and a higher revenue ceiling for one-person firms. Federal debts incurred by micro-entrepreneurs through October 13, 2026 would be forgiven, and the annual revenue limit would rise to R$110,000 in 2027 and R$140,000 in 2028. The bill now moves to the Senate before President Lula can sign it.
Brazil’s Chamber of Deputies, a 513-seat body, backed the measure 461–4. The text came from Rubens Pereira Júnior, a Workers’ Party deputy from Maranhão, and combined two government proposals concerning MEIs—one-person registered firms that can invoice clients and pay a single monthly charge for tax and social security.
The existing annual revenue ceiling of R$81,000 has stood since 2018. The bill would raise it to R$110,000 in 2027 and R$140,000 in 2028. Federal debts accrued by these micro-entrepreneurs through 13 October 2026 would be erased, including those already recorded as overdue. The Senate must act before President Lula can sign it.
The measure could ease pressure on Brazil’s smallest registered businesses, including street vendors, drivers and freelancers. Clearing federal debts may help some remain formal or recover, while higher revenue limits might let others expand without immediately leaving MEI status. Yet the fiscal cost could weigh on public finances, and benefits may be uneven. Its timing before the runoff may influence perceptions, though actual effects depend on Senate approval and how rules are implemented.