Brazil's President Luiz Inácio Lula da Silva has signed a law cancelling federal tax debts owed by micro-entrepreneurs, four days before Sunday's presidential run-off against Flávio Bolsonaro, The Rio Times reports, citing Brazilian newspapers.
The measure covers debts of people registered under the simplified MEI regime for one-person businesses up to 13 October, including social security contributions, interest and fines. It takes effect in January, provided businesses keep up payments for six months. The annual revenue ceiling for the regime will also rise from R$81,000 to R$140,000 by 2028, and owners will be able to employ two people instead of one.
Estimates of the debt written off range from about R$12bn to R$15bn. Folha de S.Paulo described the move as part of Lula's effort to win support after trailing in the first round.
Source: The Rio Times
