Export taxes of up to 25 per cent on mainland supplies of various flours to Hong Kong will be scrapped, the mainland agent said yesterday. A spokesman from the State Council's Customs Tariff Commission said yesterday the export taxes would mainly apply to grains, like wheat, corn, rice and soya bean, and their flour exports to international markets, which would not include Hong Kong, Macau and Taiwan. The spokesman said it had fully studied the effects on the manufacturing industries in the three regions in every policy adjustment. Mainland flour supplies to Hong Kong were suspended when a new regime restricted the amount of flour sold to the city and other markets, and export tariffs on wheat, corn and rice flour have been in force since the start of the month. Clement Chen Cheng-jen, the chairman of the Federation of Hong Kong Industries, said the move would help ease inflationary pressure and stabilise food prices. The new tax had raised the spectre of further price rises. Flour supplies resumed on Sunday after the export ban was lifted after talks between the local authority and its mainland counterparts. The export taxes were scrapped, but the cancellation of a 13 per cent rebate would remain. The Commerce and Economic Development Bureau said it welcomed the mainland authorities' move to shelve the taxes.