Speaking during the parliamentary committee reviewing the proposed state budget for next year, Jihad admitted that the government must revise the present tax system. The minister's comments came a day after the committee had urged the government to introduce income tax as a measure to boost state revenue. Lawmakers had also called on the government to do away with the present double tax system where low income tax payers are forced to bear the brunt of import duty and Goods and Services Tax (GST). "Our research shows that the amount the state will earn from income tax is much less. Even now the state is indirectly getting income tax from leasing state property. The tax system will only be complete by introducing income tax," Jihad said. As very few people get salaries over MVR100,000 in the Maldives, the state would earn much less from income tax, minister explained. However, he said the government would introduce income tax in the future. Overdue state bills and subsidies Jihad said the government had paid MVR1 billion in over due bills while half of that amount has been included for next year. Minister said the government has planned to reduce the amount given as subsidies for next year where only a targeted group will receive subsidies. "Only a targeted group will receive subsidies next year. So we've reduced the amount given in subsidies by half," he added. The proposed budget worth MVR27.457 billion (USD1.7 billion) for the coming year which is MVR3.1 billion more than this year was submitted to the parliament for review on Thursday.