In its effort to restore the financial condition which also has hit financial markets around the world, the Greek Government intends to increase some taxes. It is also a prerequisite for the proposed International Monetary Fund and the European Union before pouring the bailout.

When the increase of the tax component is applied, it is expected deficit of Greece’s gross domestic product will be 8.1 percent in 2010, down from 13.6 percent in 2009 positioning.

One target of the Greek tax increase, as quoted from CNNmoney, Monday (05/17/2010), is a special tax to fuel vehicles and cigarettes.

Expected from vehicle fuel tax and tobacco this year acquired for 200 million euros. Special tax will be charged on alcoholic beverages that is projected to earn 50 million euros this year.

“Tax is targeted for the rich. But it does not mean lower class of society will be affected or escaped from other taxes,” said Mitchell Orenstein, a professor from Johns Hopkins University, who wrestle problems in Europe.

Greece will also improve the Value Added Tax, ie from 10 percent to 11 percent and from 21 percent to 23 percent, with projections for the state budget added 800 million euros in 2010.

Meanwhile, the salaries of civil servants Greek city will also be cut with a projected savings of 1.1 trillion euro budget. Retirees also cut wages, except for the retirees with lower-level employees. Retirement age was increased to 65 years, up from the previous figure at the age of 61 years.