Greece will institute tax reforms to urgently boost government revenues.

Greece has been planning tax reforms as part of a deficit-reduction plan, endorsed by the European Commission.

The socialist government has had to contend with fiscal problems that have shattered its bond and stock markets, driving its borrowing costs sharply higher and pushing the euro currency down against the dollar.

The tax reform bill is expected to be become law by the end of the month and will apply to income levels that are lower than the current levels.

The country's finance minister has said he will first lower the current 75,000 euro income threshold which attracts a 40 percent tax rate.