UPDATE 1-Greece eyes 1 bln eur revenue boost from fuel tax

* Fuel tax hike to boost revenues by about 1.0 bln eur

* Wage freeze extension seen saving 150-200 mln euros

(Adds details, fin official comment, background)

ATHENS, Feb 3 (BestGrowthStock) – Greece’s move to raise fuel taxes
should generate additional revenue worth about 0.4 percent of
gross domestic product (GDP) this year, the country’s deputy
finance minister said on Wednesday.

Greece, scrambling to cut its budget deficit to 8.7 percent
of GDP in 2010 from close to 13 percent last year, announced
extra measures late on Tuesday to convince financial markets and
its EU peers it has the resolve to repair its public finances.

The measures, announced by the prime minister in a televised
address, include extending a wage freeze across the public
sector this year.

“We will save 150 to 200 million euros from the public
sector’s wage freeze this year and get about 1.0 billion euros
from the increase in the special tax on fuels,” Deputy Finance
Minister Philippos Sachinidis told Reuters.

One billion euros would be the equivalent of about 0.4
percent of Greece’s 250 billion euro economy.

The EU Commission, which on Wednesday backed Greece’s plan
to reduce its budget deficit below three percent of GDP by 2012,
has urged Greece to cut its overall wage bill and take extra
fiscal measures.

Another finance ministry official told Reuters the rise in
the fuel tax would be about 10 to 15 percent.

“It has not been finalised yet,” the official, who did not
want to be named, said.”From the hike in fuel tax and the wage
freeze, the overall benefit could reach around 0.5 percent of
GDP.”

Stock Market Today

(Reporting by Lefteris Papadimas, writing by George
Georgiopoulos; editing by Patrick Graham)

UPDATE 1-Greece eyes 1 bln eur revenue boost from fuel tax