The Rajasthan government on Tuesday decided to hike the license fee of bars and also raise VAT to 20 per cent on country-made-foreign liquor and beer.
The decision was taken at a Cabinet meeting presided over by Chief Minister Ashok Gehlot.
The Cabinet also approved the proposal of spending one per cent of the excise revenue on poor people's free medical care, rehabilitation of makers of "hathkar sharab" (country made liquor) and on a campaign against liquor and drugs, officials said.
However, the new rate of the license fee is yet to be decided.
The Cabinet also said that January 30th, the death anniversary of Mahatma Gandhi, would be included in the list of dry days in the state, they said.
The meeting gave approval to raise the minimum sale price rate of "doda-post" (opium derivatives) from Rs 50 per kg to Rs 100 per kg while the maximum retail sale price would be reduced from Rs 621 to Rs 500 per kg from the next Financial Year.
Since the Congress government came in power last month, altogether 156 liquor shops were closed down near educational institutions, religious places and other VIP areas.