Finance Minister Vitor Gaspar has described the planned tax increases as "enormous" and can amount to nearly two to three months' wages for middle income workers.
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The budget presentation on Monday is likely to face opposition from anti-government protesters.Police expect a big protest outside the parliament as many Portuguese demonstrate that their stoic acceptance of austerity, once much admired, has turned to anger.
The government is set to introduce sharp surge in income tax to ensure the country meets its budget goals under the bailout. Pension cuts, a financial transaction tax and higher property taxes are also expected in the announcement.
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