Chamber approves urgency to expand MEI revenue limit

Brazil's Chamber of Deputies unanimously approved urgent processing on Tuesday (17) for a bill expanding the micro-entrepreneur individual (MEI) revenue limit. Authored by Senator Jayme Campos, the bill raises the current R$ 81,000 cap, though sources differ on the new figure: R$ 130,000 or R$ 144.9 thousand.

Brazil's Chamber of Deputies approved on Tuesday (17) the urgency request for a bill updating Simples Nacional rules and expanding benefits for micro and small businesses, focusing on MEI. The vote was unanimous with 430 ayes, allowing direct plenary debate without further thematic committees, as reported by Folha and Metrópoles. Chamber President Hugo Motta (Republicanos-PB) stated the merits would be discussed with the government and productive sector due to potential budgetary impacts, without a set voting date. “We have responsibility, we will discuss with all involved, we will listen to the government's economic team,” Motta said post-approval. The bill, from Senator Jayme Campos (União-MT) and Senate-approved in August 2021, has cleared two Chamber committees. Deputy Jack Rocha (PT-ES) argued: “We are doing social justice to include mainly women investing in crafts and family farming.” Bia Kicis (PL-DF) claimed no fiscal waiver, as Simples limits are over 80% deflated since 2016 by inflation. Reports differ on the proposed MEI limit: R$ 130,000 (Folha) or R$ 144,900 (Metrópoles), with annual IPCA adjustment, raise to two employees, and rural activities inclusion. The bill maintains unified tax collection but may reduce short-term revenue, without official estimates.

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President Lula passionately defends income tax exemption for salaries up to R$5,000 in national TV address, highlighting economic boost and taxing the elite.
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Lula defends IR exemption in national address

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President Luiz Inácio Lula da Silva addressed the nation on radio and TV on November 30, defending the income tax exemption for salaries up to R$ 5,000 monthly. He criticized Brazilian elite privileges and noted the measure will inject R$ 28 billion into the economy in 2026. Compensation will come from taxing super-rich individuals, Lula said.

The Senate approved on Wednesday, December 17, 2025, a bill that cuts federal fiscal benefits by 10% and raises taxes on online bets, fintechs, and interest on own capital. The measure unlocks about R$ 22.45 billion for the 2026 Budget, avoiding cuts in spending and parliamentary amendments. The text heads to presidential sanction after a 62-6 vote.

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Following the Senate's approval on December 17, Brazil's Congress passed PLP 128/2025 on December 26, raising taxes on fintechs—part of a broader fiscal package cutting benefits and hiking other levies to unlock R$22.45 billion for the 2026 budget. The fintech measure aims to align fiscal treatment with traditional banks for competitive neutrality, but fuels debate on stifling innovation and financial inclusion. Proponents see fair compensation; critics fear consumer harm.

Serge Papin, the junior minister for Commerce and Purchasing Power, has proposed allowing employees earning less than two times the minimum wage to withdraw up to 2,000 euros from their company savings plans tax-free. The measure aims to boost consumption amid economic gloom. The amount could rise during parliamentary debates.

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The Chamber of Deputies concluded on Tuesday (16/12) the vote on highlights of PLP 108/24, reducing the tax rate for Football Anonymous Societies (SAFs) to 5% and removing the 2% cap on the Selective Tax for sugary drinks. The text, regulating the 2023 tax reform, goes to presidential sanction. The measure has been a government priority since last year and takes effect in 2026.

Presidents of PL and União Brasil announced efforts to prevent the PEC ending the 6x1 schedule from advancing in the Chamber's Constitution and Justice Committee. They argue a plenary vote would be difficult in an election year. The proposal amends the Constitution to cap the workweek at 36 hours.

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President Luiz Inácio Lula da Silva sanctioned on December 26, 2025, the law—previously approved by Congress on December 17—cutting 10% of federal fiscal incentives and raising taxes on betting houses, fintechs, and interest on own capital (JCP), projecting R$20 billion in 2026 revenue. However, he vetoed a congressional 'jabuti' clause revalidating nearly R$2 billion in parliamentary amendments from 2019-2023, citing unconstitutionality per STF rulings.

 

 

 

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