Costlier Cigarettes, FASTag norms, LPG prices: Key changes coming from February 1 ahead of Budget 2026

The 2026-27 Union Budget will be presented by Finance minister Nirmala Sitharaman in Parliament on Sunday, February 1. This is the FM's her ninth consecutive Budget and the first time that the annual budget is being tabled on a Sunday. Additionally, the month is set to begin with several rule and price changes that will directly affect household spending, travel, fuel costs and personal finances. From cigarette prices and FASTag norms to LPG, fuel rates and market operations, February 1 marks an important reset point for consumers across India.

Under the current new income tax regime, income up to Rs. 12.75 lakh is tax-free after rebates. As the Budget approaches, taxpayers are closely watching for clarity on the differences between the old and new tax regimes, and whether any slabs or rebates will be revised.

Unlike earlier years, stock markets will operate as usual on Budget Day. The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have announced that the markets will remain open from 9:15 am to 3:30 pm on February 1, with the Budget speech scheduled at 11 am. This is expected to lead to heightened intraday volatility across equity and derivatives markets.

From February 1, FASTag users will no longer need to undergo separate KYC verification after activation. The National Highways Authority of India has placed the responsibility of verifying vehicle details entirely on FASTag-issuing banks, streamlining toll payments. This reform will also bring significant relief to lakhs of common road users who were facing inconvenience and delays after FASTag activation due to post-issuance KYV requirements, despite having valid vehicle documents.

Oil marketing companies will announce revised LPG prices on February 1. Domestic and commercial cylinder rates are reviewed monthly. The price of the 19-kg commercial cylinder was cut by Rs. 14.50 in the previous revision, and the new rates will determine whether household and business cooking costs rise or fall.

There's a possibility that the announcement regarding changes in CNG, PNG, and aviation fuel prices can be made on February 1st. Any increase in CNG or PNG rates could raise transport and household energy expenses, while changes in aviation fuel prices may influence airfares in the coming weeks.

Pan masala, cigarettes, and tobacco are likely to become more expensive from February 1st. Cigarettes, specifically will see a major tax change with the reintroduction of a specific central excise duty over and above GST. The duty ranges from Rs. 2,050 to Rs. 8,500 per 1,000 cigarettes, based on length and filtration. Short non-filter cigarettes up to 65 mm will attract about Rs 2.05 per stick, while longer cigarettes between 70 mm and 75 mm will face duties of around Rs. 5.4 per stick, marking the first major shift in cigarette taxation since GST was introduced in 2017.

The Uttar Pradesh government has decided to make Aadhaar-based authentication mandatory for property registration from February 1, 2026. Under the new system, biometric verification of buyers, sellers and witnesses will be compulsory at the time of registration, significantly strengthening safeguards against fraud and irregularities in land transactions across the state.