Lula Unveils MEI Relief Package Days Before Runoff

Overview

• The government announced a package for microentrepreneurs that includes tax‑debt forgiveness, inclusion in the Desenrola 3.0 debt‑renegotiation program, a proposed R$5,000 'Pix MEI' transfer and higher MEI revenue caps.
• Officials provided preliminary cost estimates that put the Pix MEI at about R$5 billion over four years, R$3 billion in tax renunciation over three years for MEI debt relief and up to R$15 billion allocated for Desenrola, according to the planning minister.
• The announcement on Tuesday drew sharp public criticism from challenger Flávio Bolsonaro who accused the government of trying to buy votes, even as he reversed course to back the Senate PEC ending the 6x1 work schedule.
• The Tribunal Superior Eleitoral convened an extraordinary virtual session to pursue a PL lawsuit alleging the federal government exceeded institutional‑advertising spending limits, and a minister ordered the Planalto to produce detailed records from 2023–2026.
• Legal experts and economists say the late electoral measures expose fiscal pressures and raise questions about possible abuse of political power, with the next developments to watch being TSE findings, congressional approval steps and how the programs will be funded and executed.