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Motorists and smokers will have to dig deeper in the future after the Luxembourg government announced plans to raise taxes by two per cent.
The changes form part of a raft of reforms outlined in the Stability and Growth Pact aimed at helping the country save €535 million by 2015.
Key changes affecting workers and residents include an increase in solidarity tax, from four per cent to six per cent (and eight per cent for high earners).
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