The Cook Islands chamber of commerce says the government needs to take action on medium and long term planning for the economy.
Chamber president, Ewan Smith, was speaking after the government announced lower taxes for low income earners.
He is welcoming the lower taxes but says there's been ongoing discussions about altering other aspects of the tax structure, specifically tariffs, where no action has been taken.
He says they may have to continue waiting because MPs appear to be more concerned about their political survival than any planning for the economy.
But, Mr Smith says he does think lower taxes, which have been signalled for some time, are good.
"Reductions in tax are always good,...really it's a matter of principle, I mean its certainly a little welfare oriented. ..In that it's aimed at increasing the take home pay of low income earners....If people have more take home pay, then obviously they will do a little bit more of spending within the economy, so I think it probably has a slightly positive effect on the economy."
Residents will only pay tax if they earn more than ten thousand dollars.
