New Delhi: With the Union Budget 2026 set to be presented on February 1, attention across the country is firmly fixed on Finance Minister Nirmala Sitharaman’s proposals, amid expectations of price changes and tax revisions on several key commodities. Economic experts anticipate that while some items may become costlier, others could see tax relief, depending on the government’s final policy announcements.
Among the major areas likely to be impacted are cigarettes and tobacco products, where the government is expected to raise excise duty and the National Calamity Contingent Duty, potentially pushing prices up by 5 to 10 percent. The move is seen as part of ongoing efforts to discourage tobacco consumption. In addition, FASTag toll charges on national highways may be marginally revised to support infrastructure funding, as road maintenance costs continue to rise.
In the electronics sector, customs duty on imported mobile components may be reduced under the Make in India initiative, aimed at boosting domestic manufacturing. However, higher taxes are expected on premium imported televisions, cameras, and household appliances, which could lead to price increases for branded electronic goods from February.
Jewellery associations have urged the government to cut import duty on gold, a step that could bring relief to consumers and investors if approved, while silver prices may also be affected. Meanwhile, to promote eco-friendly transportation, incentives for electric vehicles are likely to be extended, and a possible reduction in taxes on lithium-ion cells used in EV batteries could make electric scooters and cars more affordable.
Economic analysts believe Budget 2026 will largely focus on providing income tax relief to the middle class and strengthening the rural economy. The exact impact on prices and taxes across sectors will become clear after the Finance Minister concludes her budget speech on February 1, following which detailed reactions from markets and industry are expected.