The government has slashed windfall tax on domestically produced crude oil to Rs 2,100 per tonne, from Rs 4,600 per tonne with effect from Saturday. The tax is levied in the form of Special Additional Excise Duty (SAED).

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The SAED on the export of diesel, petrol and jet fuel or ATF, has been retained at 'nil'.

The new rates are effective from August 17, an official notification said.

India first imposed windfall profit taxes on July 1, 2022, joining a host of nations that tax supernormal profits of energy companies.

The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks.