The government has raised tax rebates for more than 600 export items, some up to the maximum level possible, as it stepped up efforts to provide succor to businesses battling the global economic slowdown.

The Ministry of Finance said yesterday that it had increased tax rebates ranging from 5 to 17 percent on export products, including ethanol, toys and sewing machines, effective June 1.

The export tax rebate scheme allows enterprises to get back part or all of the money they have paid in value-added tax, which stands at up to 17 percent, for items that have gone into the production of export goods.

But the latest rise in rebates effectively scraps the taxation on certain products, such as sewing machines and television transmission equipment.

This is the seventh time that the government has raised tax rebates for exporters since last August, when overseas demand began to shrink sharply due to the global financial crisis.

In the first four months this year, exports dropped 20.5 percent from a year earlier to $337.4 billion, while imports plunged 28.7 percent to $261.99 billion.

"The tax incentives have been effective in the last few months," Li Jianfeng, analyst with Shanghai Securities Co Ltd said.

"Export volumes of some labor-intensive products have started to pick up on a month-to-month basis and the decline in overall trade has slowed recently."

However, Li said the pick-up in several export sectors is due largely to the gradual revival in demand and consumers' preference for low-cost Chinese goods at a time of economic difficulty.

"Demand, rather than a cut of a few percentage points in costs, holds the key to the recovery of exports," Li said.