Brazil's President Signs New Law to Help Small Business Owners
Listen to the story
Brazilian President Lula signed a new law on Wednesday that changes the rules for small, one-person businesses known as MEI. The law was approved earlier by Congress as part of a larger reform package.
One of the main changes raises the yearly income ceiling for MEI businesses to 140,000 reais. This means these small businesses can now legally earn more money before they must change their business type.
The law also allows each MEI to hire up to two employees. Previously, these small businesses had stricter limits on hiring workers, which made it harder for them to grow.
Another important part of the law offers debt forgiveness for some federal debts owed by MEIs. This could help many small business owners who have struggled financially in recent years.
The changes are being called the "MEI package" by lawmakers, since they combine several reforms into a single piece of legislation.
The news report also mentioned Pix, Brazil's popular instant payment system. According to the summary, if the government distributed money equally among all MEIs through Pix, each person would receive only 363 reais.
This detail suggests that the number of registered MEIs in Brazil is very large, since an equal distribution of funds results in such a small amount per person.
Overall, the new law is expected to give more flexibility to small business owners across the country, though exact details about who qualifies for debt forgiveness were not fully explained in the report.
Vocabulary10 words
- MEI
- a very small, one-person registered business
- Congress
- the group of lawmakers who create and approve laws
- income ceiling
- the highest amount of money allowed
- employees
- people hired to work for a business
- debt forgiveness
- cancelling money that is owed
- legislation
- a law or set of laws
- Pix
- Brazil's fast digital payment system
- distribution
- the act of sharing something among many people
- flexibility
- the ability to change or adapt easily
- reform
- a change meant to improve something
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Quiz
Answer key
1. It changes rules for small one-person businesses 2. MEIs can now earn up to 140,000 reais a year 3. True
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Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
Brazilian President Lula signed a new _____ on Wednesday.
The law was approved earlier by _____ as part of a larger reform package.
One of the main changes raises the yearly income _____ for MEI businesses to 140,000 reais.
The law also allows each MEI to hire up to two _____.
Another important part of the law offers debt _____ for some federal debts.
The changes are being called the "MEI _____" by lawmakers.
The news report also mentioned _____, Brazil's popular instant payment system.
If the government distributed money equally among all MEIs, each person would receive only _____ reais.
This detail suggests that the number of registered MEIs in Brazil is very _____.
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