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Greece warned on tax

GREECE has taxed its citizens enough and needs to refocus its austerity programme on long-term spending cuts, the IMF said.

The warning from the International Monetary Fund came as the county heads toward its fourth year of recession.

Revenues continue to remain weak despite draconian new emergency taxes. "I think one of the things we have seen in 2011 is we have reached the limit of what can be achieved through increasing taxes," Poul Thomsen, the IMF mission chief in Greece said. He added the country's structural reforms had fallen "well short" of expectations. But he said it was too early to say whether new austerity measures would have to be taken next year.