Major changes in February: Cigarettes, gas, FASTag, property registration and more; read in detail
New cars, jeeps and vans will no longer require Know Your Vehicle (KYV) verification when issuing FASTag
PTC Web Desk: Starting today, six major changes have come into effect, affecting everyday life and consumer expenses across India.
Cigarettes and tobacco products get costlier
Tobacco products such as pan masala, gutkha and khaini now attract a 40% GST, replacing the earlier 28% GST plus compensation cess that pushed total tax above 50%. Cigarettes will see a new excise duty based on their length, ranging from Rs 2.05 to Rs 8.50 per stick. GST on beedis has been reduced to 18%. Retail prices of tobacco products and cigarettes are expected to rise between 15% and 40%, increasing government revenue.
FASTag KYV verification no longer needed
New cars, jeeps and vans will no longer require Know Your Vehicle (KYV) verification when issuing FASTags. Existing FASTags will also not need routine KYV checks. KYV will now be conducted only in case of complaints about misuse or incorrect issuance, simplifying the process for vehicle owners.
Commercial gas cylinders become pricier
The price of 19-kg commercial gas cylinders has increased by up to Rs 50. In Delhi, the price has risen from Rs 1,691.50 to Rs 1,740.50, while in Chennai it now costs Rs 1,899.50 per cylinder.
RBI may cut interest rates
The Reserve Bank of India (RBI) will hold its last monetary policy meeting for FY 2025-26 from February 4–6. Analysts expect a 0.25% cut in the repo rate, which could reduce loan costs and EMIs for borrowers. In the previous MPC meeting in December, the rate had been lowered to 5.25%.
Aviation fuel prices drop
Aviation fuel costs have been reduced by nearly Rs 1,000 per kiloliter, which may help lower airfare. For example, in Delhi, aviation fuel prices have fallen from Rs 92,323.02 to Rs 91,393.39 per kiloliter, potentially reducing operational costs for airlines.
Aadhaar authentication mandatory for property transactions
From February 1, UP and Karnataka governments require Aadhaar authentication for property registrations. Buyers, sellers, and witnesses must verify their identity using biometric devices at sub-registrar offices. This measure aims to curb property fraud and prevent “benami” transactions. The Centre plans to roll out this process nationwide under the “One Nation, One Registration” initiative.