Finance Minister P. Chidambaram Wednesday assured the industry of soon reducing tax rates to be on par with members of the ASEAN (Association of South East Asian Nations).

"We have redeemed our promise of bringing down tax rates. Since the launch of tax reforms in 1997, successive governments have carried forward the reforms," Chidambaram said at the inaugural function of an e-payment facility for excise and service tax.

Stating that tax reforms were an ongoing process, he said the rates in India would soon come to one of the best in the world. "It is our endeavour to bring down tax rates to ASEAN level."

The minister, however, expressed concern about huge tax evasion, which he said was evident from the fact that a bulk of excise (90 percent) was paid by only 5,500 people.

"We are in dialogue with the chambers of industry to find out why the number of assessees is too small," Chidambaram said, adding that it was also intriguing and disturbing that only 85,000 people had admitted to earning an income of over Rs.1 million a year.

"We must find those with large income but don't pay tax as ultimately the honest tax payer ends up paying for the non-tax payer too."

He said the rates would automatically become moderate if everyone starts paying them.

Chidambaram urged banks to improve services that facilitate easy payment of taxes by customers, including introduction of online tools.

"Tax rates must be moderate, tax administration user-friendly and enforcement impartial and strict," he said.