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Greece adopts new tax law demanded by creditors to boost revenues by $3 billion

Greece's Parliament has approved new tax legislation aiming to boost state revenues by €2.3 billion ($3 billion) this year, under the bailout-dependent country's commitments to its international creditors.

The law approved early Saturday with the support of all partners in the country's three-party ruling coalition shuffles and simplifies tax scales, reforms family benefits and expands the tax base to include groups such as low-earning farmers.

It brings in a new top tax rate of 42 percent for Greeks earning more than €42,000 ($56,000). The previous top rate was 45 percent for incomes above €100,000 ($132,000).

The government says the new law will reduce the burden on salary-earners and pensioners making less than €25,000 ($33,000) a year.

Greece has implemented harsh austerity measures since 2010 to secure vital international loans.