Government estimates that project that provides for forgiveness of MEI debts will have an impact of R$3 billion in three years

The economic team of the government of President Luiz Inácio Lula da Silva (PT) estimates that the Complementary Law Project (PLP) that provides for the forgiveness of debts of Individual Microentrepreneurs (MEIs) registered in the Union's Active Debt will have an impact of R$3 billion in three years.

The proposal is part of the package of measures aimed at small businesses announced by the federal government this Tuesday (13), 12 days before the second round of elections. The text still depends on approval by the National Congress.

Fiscal impact of the proposal that provides for forgiveness of MEI debts Year Fiscal impact 2027 R$ 1,122,716,619.34 2028 R$ 1,010,444,957.41 2029 R$ 909,400,461.67 Total: R$ 3,042,562,038.42

In total, according to the government, the project provides for the full forgiveness of R$12.6 billion in debts of around 3.6 million MEIs.

Union debts registered in Active Debt until October 13, 2026, relating to contributions owed by micro-entrepreneurs, in addition to interest, fines and legal charges, will be covered.

According to the government, almost 86% of the stock of these debts, equivalent to around R$11 billion, is considered difficult or impossible to recover.

The economic team argues that maintaining the collection of this volume of debts generates administrative costs with no guarantee that the amounts will be effectively recovered.

"Maintaining the collection of this volume of debts generates high administrative costs for the government, without the guarantee that the money will actually be collected. With forgiveness, the government starts to focus on debts with a greater chance of recovery, while micro-entrepreneurs gain financial relief to invest in their own businesses and return to paying taxes on time", says the government, in a note.

To maintain the forgiveness, the micro-entrepreneur will have to pay their monthly contributions on time in the six months following the law's entry into force.

On another front, the government defined "safeguards" to limit the effects of the measure.

As a result, anyone who has already paid the debt before the law came into force will not be entitled to a refund or compensation of the amounts.

Guarantees also linked to debts that are not forgiven may be maintained in the amount necessary to cover these debts. The project also establishes that the closure of processes due to forgiveness cannot, in itself, generate legal fees from the beneficiary.