THE State Council, China's Cabinet, approved the scrapping of export tax rebates on 406 products, effective July 15, the Ministry of Finance said yesterday.

The products included some steel and nonferrous metals products, fertilizers, as well as some plastic, rubber and glass products, it said. The ministry did not offer any reasons for this move.

Galaxy Futures Co's research department 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 Ministry of Finance, said the new policy mainly targeted high-polluting products or ones that use lots of energy.

Bai said it's another "iron hand" measure by the government to save energy and reduce emissions.

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

According to a 2006 plan, China will reduce its per unit GDP energy consumption by 20 percent by the end of this year, compared with 2005 levels.