Brazil · Country watch

Lula's MEI Law, PHP Vulnerability, São Paulo Violence

New MEI law relieves debts; PHP flaw prompts global site fixes; São Paulo faces violence-related contract disputes.

Florent Kalfon · October 22, 2026 · 12 sources

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Business conditions in Brazil are mixed today. Lula's new MEI law offers debt relief, improving small business prospects, while PHP vulnerabilities and São Paulo's violence-related contract disputes present challenges.

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In this briefing Luiz Inácio Lula da Silva · Prospera MEI · PHP · NSA · Ricardo Nunes · Smart City SP

Regulation

Public sector
Retail

Lula sanctions debt relief for 4 million MEIs

Brazillian flag — Rafaela Biazi / Unsplash

President Luiz Inácio Lula da Silva sanctioned a law on Wednesday forgiving tax debts for microentrepreneurs (MEIs) with the federal government. The legislation, effective January 1, 2027, is expected to benefit around 4 million MEIs with debts totaling R$15 billion, according to Folha de S.Paulo. The law also raises the annual revenue cap for MEIs and expands hiring possibilities, aiming to boost small business growth.

Impact Microentrepreneurs gain financial relief and growth potential with debt forgiveness and increased revenue limits.

Watch The law takes effect on January 1, 2027. · 1 January 2027

Sources: Folha de S.Paulo ↗, O Globo ↗, Extra ↗

Disruption

Technology
Telecom

PHP vulnerability prompts global site shutdowns

Governments and companies worldwide took down websites on Thursday following the discovery of critical PHP programming language vulnerabilities. The U.S. National Security Agency urged immediate security patches or system disconnections, as reported by Folha de S.Paulo. A cybersecurity firm noted millions of invasion attempts after the vulnerabilities were revealed, highlighting the widespread impact.

Impact Technology firms and telecom operators face urgent security measures and potential service disruptions due to PHP flaws.

Sources: Jornal de Brasília ↗, Folha de S.Paulo ↗

Internal tension

Public sector

Smart Sampa cites violence for contract adjustment

The Smart City SP consortium requested a contract adjustment from São Paulo's Mayor Ricardo Nunes due to an 'unexpected and extraordinary' wave of violence. Folha de S.Paulo reports that the consortium, responsible for combating crime, also seeks cancellation of fines related to system malfunctions. The request highlights operational challenges amid rising violence in the city.

Impact Public-sector contracts in São Paulo face renegotiation pressures due to increased violence affecting service delivery.

Sources: Folha de S.Paulo ↗, Jornal de Brasília ↗