Greece announces 7 billion euros in new taxes in 2012 budget

The Greek government announced 7.1 billion euros in new taxes for its 2012 budget which will be tabled in parliament later Monday, in an effort to meet revised deficit targets and satisfy the terms of a European Union-led rescue.

The new taxes will include increasing the objective value of property and reducing the tax-free calculation of property tax.

The new budget also foresees the implementation of a uniform pay scale, reductions in pensions and increased tax for heating oil and fuel.

Greece's cabinet announced late Sunday that it adopted the draft budget for 2012, but that the debt-ridden nation will miss key deficit budget targets for this year and next.

According to its preliminary budget, Greece's budget deficit will be 18.69 billion euros 8.5 per cent of GDP in 2011.

Athens had originally agreed to a deficit of 17.1 billion euros, or 7.8 per cent of GDP, with the European Union, the International Monetary Fund (IMF) and the European Central Bank.