China's State Council, or Cabinet, has approved the scrapping of export tax rebates on 406 products, effective July 15, the Ministry of Finance (MOF) said Tuesday in a statement on its website.

The products included some steel and non-ferrous metals products, fertilizers, as well as some plastic, rubber and glass products, the statement said.

The ministry did not offer any reasons for this move.

The research center operated by the Galaxy Futures Company Limited said in a note that the new measure seeks to discourage exports of energy-intensive products in line with the government's intention to adjust industrial structures and cut pollution.

Bai Jingming, vice-director of the research institute for fiscal science with the MOF, said the new policy mainly targeted high-polluting and high-energy-consuming products, which is another "iron hand" measure by the government to save energy and further reduce emissions.

The State Council said in May that the government would use economic, legal, technical and even administrative measures, when necessary, to ensure meeting the goals set for cutting emission.

According to the plan laid out in 2006, China will reduce its per unit GDP energy consumption by 20 percent, compared with 2005 levels, by the end of 2010.

Bai added, as China was accelerating its economic restructuring, the country would allow taxation to play a larger role in promoting energy conservation and environmental protection.

(Xinhua News Agency June 23, 2010)