The Business Promotion Act : a critical overview of the change in Malta's tax incentive legislation

Abstract

Industrial policy is the essence of any nation's economic framework since it sets the pace for the generation of investment and the creation of wealth and employment. Various principal issues must be addressed and strategic choices made by a country in the formulation of its industrial development policy. Malta's industrial policy must seek to achieve an economic growth rate that enables the achievement of a standard of living for all Maltese citizens that is comparable with that prevailing in developed economies. This can only be achieved by making the most profitable use of all its resources. Yet, Malta's small size and its limited resources impose a restriction in this respect. As national economies become closely intertwined, threats and opportunities facing industry and policy makers are increasingly international in nature. Because of the small scale of its home market and its productive internal resources, it is important for Malta, to an even greater extent than for larger economies, to formulate a strategy that is outward-focused- one that seeks to attract Foreign Direct Investment.