Pubs will no longer pay the controversial charge for a Public Entertainment Licence (PEL) under changes planned in the Licensing Bill.
The PEL has been abandoned in favour of including provision of entertainment in the new Premises Licence.
Local authorities will not be able to set their own charge for granting a licence to put on live entertainment - which created a 'postcode lottery' in which some pubs faced charges of up to £20,000, while others only paid a nominal fee, depending on the local authority's policy.
Pubs will need to indicate on their application for a Premises Licence whether they wish to include provision of entertainment. The charges will be laid down in guidelines to be issued by the DCMS.
A spokeswoman said: "It will be a considerable improvement over the situation where there were wide variation in charges. Clearly, a small local isn't the same as a superpub, so there will be a scale of charges set out to local authorities in guidelines."
The Government has set out a band for the proposed fees for a Premises Licence ranging from £100 to £500, with an additional annual fee of between £50 and £150. The exact charges are being finalised by the DCMS and will be confirmed in due course.
However, pubs which currently offer live music without a PEL will have to apply for a new-style entertainment licence.
The DCMS is scrapping the 40-year-old 'two in a bar' rule because technology now means that a solo performer can make as much noise as a full band. The spokeswoman said: "Under the review of the entertainment licensing provisions it made sense to scrap the rule and bring all entertainment within the new licence."