China is planning to cut the value-added tax rate that covers the manufacturing sector by 3% as part of measures to support the slowing economy, a person familiar with the matter said.

The reduction in the highest of the nation’s three VAT brackets could be announced as soon as this week, when political leaders are gathering in Beijing for the annual National People’s Congress.

A 3% cut to VAT could deliver a boost worth up to 600 billion yuan or 0.6% of GDP, according to estimates by Morgan Stanley.

The move helps corporate profits at a time when the economy is facing pressure from the U.S. trade standoff and the impact of a domestic debt cleanup. The tax cut is also part of broader, more “proactive” fiscal support.