Rich should be Ready to pay Higher Taxes: Chidambaram

New Delhi, Union Home Minister P. Chidambaram on Wednesday said the rich should be taxed more and Chidambaram, who was earlier the Finance Minister of the country between May 2004 and November 2008, however this may be the reason people don’t like the Chidambaram statement on paying higher taxes by rich people.

Addressing a function of the All India Management Association here, Chidambaram said: "We must raise the tax revenue to defend (the expected aggregate decline of resources). I know many people won't like this. But I think, I can summon the courage to make the statement."

"In the starting years of economic reforms and liberalisation, the main moto was and I think, rightly on growth as we need to get away from our belief that India cannot grow more than five percent or so and that with reforms and liberalisation, greater openness and competition, India can grow at eight to nine percent, but it is something we have to believe in first before we could have achieved it," said Chidambaram.

A World Bank report had in May said that attempts by the Indian Government to combat poverty failed to yield the desired result and aid programmes were beset by corruption, bad administration and under-payments.