Budget, FASTag rules, tobacco prices: Key things to watch out for on Feb 1

Union Finance Minister Nirmala Sitharaman will present the Union Budget in Parliament on the first day of the month

February is set to begin with several important changes that will directly affect daily life. From the price of gas cylinders and cigarettes to new rules for FASTag users, many updates will come into force from February 1.

 

Union Finance Minister Nirmala Sitharaman will also present the Union Budget in Parliament on February 1, a Sunday, while stock markets will remain open. Here is a look at what is changing.

Union Budget and stock markets

On February 1, Sitharaman will present the Union Budget, announcing key changes in taxes, infrastructure, and spending. This year's Union Budget speech is expected to focus on continuity and long-term goals rather than major surprises.

 

 

On infrastructure, spending is expected to remain strong, with greater emphasis on efficiency, resilience, and improving India’s long-term competitiveness. For agriculture and the rural economy, the Budget may further digitise farming and expand the cooperative sector under the National Cooperative Policy 2025.

 

The NSE and BSE will function during normal trading hours, from 9:15 am to 3:30 pm. The Budget presentation at 11 am may lead to sharp movements in the market.

Pan masala, cigarettes and tobacco to cost more

Tobacco products and pan masala will become more expensive from February 1. The finance ministry has announced additional central excise duty and new cesses on these items.

 

These new charges will apply on top of the existing Goods and Services Tax (GST). Cigarettes, chewing tobacco, gutkha and similar products will see higher duties, while bidis will continue under a lower GST slab.

 

The government has also introduced a new system to calculate duty for chewing tobacco, gutkha and jarda. Instead of taxing actual production, duty will now be decided based on the capacity of packing machines in factories. This means companies will pay tax based on how much they can produce, not how much they actually make.

New LPG cylinder prices expected

Oil companies are likely to announce new liquefied petroleum gas (LPG) cylinder prices on February 1. This includes both domestic and commercial cylinders. The price of commercial LPG cylinders has been changing frequently in recent months. Any increase or decrease will directly impact restaurants, businesses and household budgets.

 

Additionally, prices of compressed natural gas (CNG) and aviation fuel may also be revised from February 1. If CNG prices go up, daily commuting and household fuel costs could rise. A change in aviation fuel prices may lead to higher or lower air ticket fares.

FASTag rules to become simpler

From February 1, getting a new FASTag for four-wheelers will become easier. The National Highways Authority of India has decided to discontinue the Know Your Vehicle process for new FASTag issuances.

 

For existing FASTag users, KYV will no longer be a routine requirement. It will only be needed in special cases, such as complaints related to misuse, incorrect tagging or technical issues.

 

The move is aimed at reducing inconvenience for highway users and making toll payments smoother.