BEIJING - China's State Administration of Taxation (SAT) said Tuesday that the recently-enacted new vehicle and vessel tax law will cut 3 billion yuan ($476.59 million) in taxes for owners of mid- and small-sized cars in 2012.

The Vehicle and Vessel Tax Law, which became effective January 1, levies moderately higher taxes on passenger vehicles with an engine size between 2 liters and 2.5 liters and much higher taxes on those with an engine size above 2.5 liters.

But tax rates for those with an engine size below 2 liters will be marginally lowered or remain unchanged.

The tax burden for owners of vehicles with engine capacities of 1.6 liters and below will fall the most, down about 2.8 billion yuan, if calculated with the tax standards released by local governments, the SAT said.

Meanwhile, the tax for owners of vehicles with engine capacities between 1.6 liters and 2.0 liters will stayed unchanged from previous charges, the SAT said.

The new law was revised from an interim regulation, in an effort to push forward the country's drive to conserve energy and reduce emissions, according to the SAT.