China's top tax watchdog said the country's tax and fee cuts totaled 906.6 billion yuan (about 127.1 billion U.S. dollars) in the first four months.

Of the total, the preferential tax and fee measures unveiled in 2020 to support economic development and the containment of the COVID-19 pandemic saved a total of 485.7 billion yuan, according to the State Taxation Administration.

The remaining 420.9 billion yuan of taxes and fees were reduced as a result of the implementation of a larger scale of tax and fee cut policies rolled out last year.

Since the COVID-19 outbreak, China has rolled out a slew of tax and fee relief measures to alleviate the burdens on market entities.

Meanwhile, more Chinese cash-starved small and micro-businesses have easier access to credit support thanks to the information sharing system between banks and tax departments.

Small and micro firms have received 181.6 billion yuan worth of loans based on taxpaying credit in the first quarter, official data showed.