The on-loan Rossoneri midfielder believes they can still progress in the Champions League despite losing to a late Diego Costa goal against Atletico Madrid on Wednesday
Atletico goalkeeper Thibaut Courtois thwarted Milan on several occasions before they were punished when Diego Costa headed home at the back post with seven minutes to play.
However, Taarabt, who made his debut in the competition, is confident they can turn the tie around in the second leg at Vicente Calderon.
"Is it finished? No, I don't think so," he told Sky Sport Italia.
"We put in a great performance, tactically almost perfect, and we were just unlucky on the incidents. In the second half we ran out of energy a little bit and should have scored a goal.
"Now we know it is going to be very difficult, but we are going there to score."
The 24-year-old, who has joined Milan until the end of the season from QPR, was pleased with his own display and hopes to maintain that form under new head coach Clarence Seedorf.
"I arrived from a different league and am very happy to be playing for Milan," he added. "The coach put a lot of faith in me and I scored straight away against Napoli (in Serie A).
"I think my performances have been good, but it's just a shame about the result."