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India Implements Tobacco Tax Hike, FASTag Easing and Fuel Price Updates on Budget Day

Tying the measures to Budget Day concentrates immediate effects across household budgets, with markets set to react in real time.

Overview

  • Tobacco products and pan masala face higher levies from February 1, including added excise and cesses, alongside a shift to machine‑capacity‑based duty for chewing tobacco, gutkha and jarda.
  • New FASTag rules remove routine Know Your Vehicle checks for cars, with issuing banks verifying details via the VAHAN database and KYV required only in complaint‑driven cases for existing tags.
  • Oil marketing companies raised the 19‑kg commercial LPG cylinder price by about ₹49–50 to ₹1,740.50 in Delhi, while keeping domestic LPG rates unchanged.
  • Retail fuel benchmarks were left steady at the start of the month, with petrol and diesel prices unchanged in Delhi and CNG quoted near ₹76 per kg.
  • NSE and BSE are operating normal hours on Budget Day, with traders bracing for intraday swings during the finance minister’s speech.