Union Budget 2026: What changes expected from today: Tobacco prices, FASTag rules and LPG rates

Several changes affecting daily expenses are set to take effect from Sunday, as part of the Union Budget 2026–27, which will be presented in Parliament on February 1.

Prices of tobacco and pan products are expected to rise by 15 to 40 per cent following the implementation of revised excise duty and health cess, which come into force today.

The FASTag system is set to be simplified, with the National Highways Authority removing the ‘No User Vehicle’ requirement from February 1 for newly registered vehicles in the car, jeep and van categories, easing compliance for new vehicle owners.

Meanwhile, a revision in LPG prices is expected, with oil and petroleum gas distribution companies likely to announce updated rates later on Sunday after a routine review.

These measures are expected to be outlined in the Union Budget for the financial year 2026–27, which Finance Minister Nirmala Sitharaman will present in the Lok Sabha at 11 am. The Budget will include a statement of the estimated receipts and expenditure of the Government of India, along with statutory disclosures under the Fiscal Responsibility and Budget Management (FRBM) Act.

Sitharaman will also introduce the Finance Bill, 2026, which provides legal backing to the government’s taxation and financial proposals. This will be her ninth consecutive Union Budget, extending her record for the highest number of successive Budget presentations by any finance minister.
(With PTI inputs)