China's top economic planning body is proposing to cut the tax levied on car purchases by half, as the impact of an escalating trade war with the United States threatens to slow the Chinese economy and affect demand for light vehicles, Bloomberg reported Monday. The country’s top economic planning body submitted a plan to key policymakers to lower the purchase tax to 5 percent for passenger vehicles with engines no bigger than 1.6 liters, according to people familiar with the matter. No decision has been made on implementation, Bloomberg reported, citing people who asked not to be identified because the information isn’t public. Reuters reported earlier this month that the China Automobile Dealers Association submitted documents to the country's finance and commerce ministries proposing the 10 percent auto purchase tax be halved.