Portugal announces sweeping tax hikes

LISBON Oct 3 (Reuters) - Portugal will raise taxes across the board to ensure the country collects enough revenues to meet tough budget goals under its 78-billion-euro bailout, Finance Minister Vitor Gaspar said on Wednesday.

The country will raise income taxes to an average rate of 11.8 percent from 9.8 percent currently and slap a 4 percent income tax surcharge in 2013. It will also launch new taxes on capital and luxury property already this year, Gaspar told journalists.

He said the government will also propose a tax on financial transactions and continue to cut spending, adding that in 2013 all additional austerity measures will amount to 3 percent of gross domestic product.