The Greek parliament has approved a controversial law on property tax demanded by the austerity-hit country’s international lenders, amid widespread protests against the legislation.
On Saturday, Greek lawmakers passed the bill with a narrow majority of 152 votes in the 300-seat parliament. Critics have described the new law as a final blow to Greece’s shaky economy.
Following the vote, Greek Prime Minister Antonis Samaras said Vyron Polydoras, a conservative lawmaker and former minister, has been expelled from the ruling New Democratic Party after he voted against the bill.
The move reduced the already slim majority of Greece’s coalition government to 153 in the parliament.
The new law, which is to take effect on January 1, 2014, will fix a tax on agricultural plots larger than 1,000 square meters (10,764 square feet).
Greece Finance Ministry says the tax is aimed at raising some 2.65 billion euros (USD 3.6 billion dollars) in 2014. However, unions and left-wing parties in the country have criticized what they call an over-taxation of real estate.
Main opposition leader, Alexis Tsipras, lashed out at Athens for carrying out a “heist” against landowners, saying, “You tax every inch of home yard and garden, and then come here and talk of growth.”
On Friday, several hundreds of Greek farmers marched towards the parliament building in Athens, carrying banners that read, “Not one euro for the fields” and “No to the double taxation.”
The protest was held as lawmakers were debating the law, which is required by Greece’s troika of international lenders – the European Union, the European Central Bank (ECB), and the International Monetary Fund (IMF).
Athens has been dependent on bailout funds from international “rescue loans” since May 2010, when it was first granted a 110-billion-euro (USD 145 billion) package and was followed by another 130-billion-euro (USD 170 billion) package in February 2012.