The Greek parliament passed key tax legislation early Saturday, a measure designed to shore up state coffers by 2.3 billion euros (3 billion dollars) this year.
Athens' international creditors - the European Union, the European Central Bank and the International Monetary Fund - made passage of the tax reform law a condition for the disbursement this month of a further 9.2 billion euros in aid to the near-bankrupt country.
Speaking before the legislature, Finance Minister Ioannis Stournaras said the law will distribute the tax burden more fairly.
"The majority of Greek families will benefit" from the change in tax code, said Ioannis, who argued that the 2.3 billion euros would have had to have been cut from pensions and salaries in 2013 had the legislation not passed.
Greeks earning more than 42,000 euros annually now face a top income tax rate of 42 per cent, while low wage earner and pensioners will see their taxes trimmed under the new law. Numerous tax breaks and write-offs, mainly concerning families with children, have been abolished.