ATHENS, Greece—Greece's new Socialist government will impose a one-off tax increase on the country's most profitable companies to pay for a welfare program.
Finance Minister Giorgos Papaconstantinou announced the measures Tuesday. He says the levy will raise euro1 billion ($1.5 billion) to help low-income families through the economic downturn.
The measure -- taxing businesses with 2008 pretax profits of more than euro5 million ($7.3 million) -- has won backing from the leader of the Greek Federation of Enterprises.
The Socialists took office after winning a general election last month. Papaconstantinou recently said he expects this year's budget deficit to reach 12.5 percent of the country's economic output, more than four times the limit set for countries using the euro.
