The former Governor of the Reserve Bank of Fiji, Savenaca Narube, is urging the government to tax the rich rather than the poor.

He says the proposed tax policy is alarming, as people have suffered greatly under the previous regime.

The Unity Fiji Party Leader says the proposed policy of reinstating the value-added tax on essential food items and increasing the tax to 15 percent will hit the poor, and he is suggesting considering reform expenses.

He says the disparity between wealth and income is widening, and the government needs to look at taxes such as capital gains, a corporate tax surcharge, and higher duties on luxury items.

Narube says a thorough and systematic review of the entire expenditures of all the ministries is also needed.

He is also recommending a review of the large budget allocation to state-owned enterprises.

Narube says these enterprises swallow a big chunk of money, and there is a need to impose safeguards to ensure they spend it wisely