Ireland's government says it will impose €1 billion ($1.35 billion) in new taxes to help the bailed-out country sharply reduce its deficits as international donors expect.
Finance Minister Michael Noonan unveiled a 2012 budget Tuesday that deepens charges on Irish drivers, home owners, savers, smokers and many others.
He says Ireland's deficit will be 10.1 percent of GDP this year and 8.2 percent next year, lower than previously forecast.
Noonan says sales tax will rise 2 points to an Irish-record 23 percent. The measure is designed to raise €670 million ($900 million) extra next year.