FASTag Rules, LPG And Tobacco Prices: What Changes On Budget Day Today

Finance Minister Nirmala Sitharaman will table the Union Budget on February 1, outlining the government’s plans on taxation, public spending and infrastructure development.

Prices of cigarettes, pan. masala and other tobacco products are set to rise from February 1

Source : PTI

February will kick off with a host of policy changes that are set to influence everyday expenses and routines. From revisions in fuel and tobacco prices to simplified FASTag rules, several updates will take effect starting February 1.

Adding to the significance of the day, Union Finance Minister Nirmala Sitharaman will present the Union Budget in Parliament on February 1, which falls on a Sunday this year. Despite it being a weekend, stock markets remain operational. Here’s a snapshot of what’s changing.

Union Budget Presentation And Market Activity

Finance Minister Nirmala Sitharaman will table the Union Budget on February 1, outlining the government’s plans on taxation, public spending and infrastructure development. Expectations suggest the Budget will focus more on policy continuity and long-term priorities rather than sweeping announcements.

Infrastructure spending is likely to stay robust, with increased attention on efficiency, durability and strengthening India’s global competitiveness. Measures aimed at agriculture and rural development may include greater use of digital tools in farming and an expanded role for cooperatives under the National Cooperative Policy 2025.

Both the NSE and BSE will operate as usual on Budget day, with trading scheduled from 9:15 am to 3:30 pm. The Finance Minister’s speech at 11 am could trigger heightened volatility in the markets.

Tobacco And Pan Masala To Get Costlier

Prices of cigarettes, pan masala and other tobacco products are set to rise from February 1 following the Centre’s decision to impose additional excise duties and fresh cesses. These levies will be charged over and above the existing GST.

Products such as cigarettes, gutkha and chewing tobacco will see higher tax outgo, while bidis will continue to attract a lower GST rate. The government has also revised the method of duty calculation for items like gutkha and jarda. Instead of taxing actual output, manufacturers will now be taxed based on the production capacity of their packaging machines, regardless of actual manufacturing levels.

LPG, CNG And Aviation Fuel Prices May Change

State-run oil marketing companies are expected to announce revised LPG cylinder prices on February 1 for both household and commercial users. Commercial LPG rates, in particular, have seen frequent fluctuations in recent months, and any change will directly affect restaurants, businesses and domestic budgets.

Alongside LPG, prices of CNG and aviation turbine fuel could also be revised. An increase in CNG rates would raise commuting and household fuel costs, while changes in aviation fuel prices could impact airfares.

Simplified FASTag Norms For Vehicle Owners

From February 1, the process of obtaining a FASTag for four-wheelers will become more user-friendly. The National Highways Authority of India has decided to remove the mandatory Know Your Vehicle (KYV) requirement for issuing new FASTags.

Existing FASTag users will also be spared routine KYV checks, which will now be required only in specific situations such as complaints of misuse, incorrect vehicle mapping or technical discrepancies.

The step is aimed at reducing hassles for commuters and ensuring smoother toll collection on national highways.