12 Jan 2013

Greek parliament passes new tax increases

8:31 pm on 12 January 2013

The Greek parliament has approved a series of unpopular tax rises intended to boost government income in line with Greece's commitment to international creditors.

The BBC reports the measures introduce a new top tax rate of 42% for Greeks earning more than €42,000 a year.

Corporate rates also go up and the tax base now includes low earning farmers.

Greece has been kept solvent by huge rescue loans from its EU partners and the IMF since May 2010.

The Conservative-led government insists the new measures, designed to raise up to €2.3bn this year, are fair.

The changes are part of an overall package approved in November to allow Greece to qualify for further bailout funds.

But the opposition say the tax rises will increase hardship for ordinary Greeks.