NEW DELHI: Sports utility vehicles (SUVs) and top-end luxury cars are expected to cost more with states and the Centre seeking to increase the cess on these vehicles to correct a so-called “anomaly” that crept in when goods and services tax (GST) rates were decided.

Sources told TOI that the plan is to increase the cess from 15% to 25%. Currently, the levy on these vehicles, including the 28% GST, adds up to 43%, which will rise to 53% once the law is amended.

There are also plans to reduce rates on a number of aam aadmi products – ranging from custard powder and idli and dosa batter to idols and prayer beads.

UP has been leading the charge for lower levies on many products, said sources.

There are several other items on which the fitment committee, comprising officers, is reviewing the rates
They are likely to be decided when the GST Council meets in Hyderabad next month. “Like cigarettes, an error crept in while deciding the rates for high-end cars,” said a source, adding that the change would require legislative amendments with the timing to be decided by the Centre.