New Rule changes starting from February 1(Budget day): Starting February 1, a wave of new regulations/changes are set to kick in across India. These aren’t just one-off changes; they are designed for the long haul to curb fraud, simplify policy and tax “sin” goods more effectively.
From your weekend road trip plans to your leisurely activities, these expected changes to existing rules can influence your financial decisions as well as your daily routine. From FASTag, LSG prices to tobacco, here’s a breakdown of the 5 major changes to look out for on February 1, Sunday.
FASTag rules are set to be simplified
The FASTag system will be simplified under the new rules coming into effect from February 1. Starting Sunday, the ‘Know Your Vehicle’ (KYV) process is being scrapped for new car, jeep, and van FASTags.
This step from the National Highways Authority of India (NHAI) takes care of a long brewed grievance of delay in the issuing of fastgags. Banks will now verify your vehicle details before issuing the tag.
For existing users, If your tag is working fine, you don’t need to do anything. KYV will only be required if there is a specific complaint about misuse.
The change is expected to benefit lakhs of road users who were facing inconvenience and delays after FASTag activation due to post-issuance KYC norms, despite possessing valid vehicle documents.
Cigarettes to become expensive
Cigarettes are set to become expensive from February 1 with higher price increases for filters and longer cigarettes. As per media reports, cigarette prices are expected to jump between 15% 40%. The duty depends on the length and whether the cigarette has a filter.
The union government notified the new duty rates for tobacco products including cigarettes, jarda, gutkha (paan masala with tobacco), and cess rate for paan masala (without tobacco) earlier this month.
This replaces the old compensation cess with a permanent excise structure. It’s a dual-purpose move: to discourage consumption for public health and to create a steady revenue stream that isn’t dependent on GST cycles.
Property: Witnesses Now Need Aadhaar (UP Update)
In a major move to kill land fraud, Uttar Pradesh has made Aadhaar-based biometric authentication mandatory at the registrar’s office startingSunday. It is no longer just about the buyer and the seller. Even the witnesses must now undergo on-the-spot biometric verification.
This creates a digital, tamper-proof trail for every land deal. It makes “Benami” transactions nearly impossible and protects you from identity theft in property disputes.
LSG price update
Oil marketing companies (OMCs) review fuel prices on the 1st of every month and since LPG cylinder prices are market-determined and linked to international benchmarks, a revision is likely from February 1. New rates for domestic and commercial LPG cylinders will be out on Sunday morning.
CNG, PNG price on radar
Prices for CNG and PNG are also on the radar. Additionally, Aviation Turbine Fuel (ATF) prices will be revised, which could make your next flight ticket cheaper—or more expensive.
Stock market to remain open on budget day
This is only the second time in Indian history that the Union Budget falls on a weekend and the markets stay open. Both the NSE and BSE will operate at their regular opening hours. As per reports by ET, the move reflects the government’s desire for immediate market discovery and to avoid a massive “gap-up” or “gap-down” opening on a Monday.