Speaking to launch the government’s tax reforms and new revenue measures President Mohamed Nasheed has said that government’s economic reforms would substantially increase the wealth and prosperity of the nation.

He underlined that full implementation of economic reform measures was expected to increase government revenue to MRF14 billion by the end of 2012.

“The government has no doubt that this, in turn, will reduce deficit, decrease state’s dependency on commercial banks [to finance deficit], increase banks’ lending to local businesses, effectively flourishing local businesses,” he added.

He said that flourishing local industries were necessary to create job opportunities, as well as to achieve the country’s development targets.

He noted that the new economic policies proposed by the government have been successfully implemented in many countries with similar circumstances as the Maldives.

“Therefore, I am confident that implementing these changes will enable us to deliver the progress, change, the people desire,” he said.

He also assured that the government sought the advice of international financial institutions, friendly countries, local business community, industry associations, and political parties while drawing up the economic reform programme.

He said that government was confident of the benefits of the proposed tax regime to local businesses.

Speaking at the event, at the President’s Office, attended by the leaders of local business community, industry associations, and the local media, the President asserted that government was convinced of the support of the local business community for the new tax regime proposed by the government.

“They are the people who are most aware of the country’s economic and monetary situation,” he said.

The President also praised the role of local business sector in the country’s development.

At the event, the President answered questions from the media on fiscal and economic reform proposed by the government.