Ministry of Finance proposes new fee levels for appraisal and issuance of karaoke and discotheque business licenses

The Ministry of Finance proposes new fees for assessing and issuing business licenses for karaoke bars and dance clubs - image 1 — The Ministry of Finance proposes new fees for assessing and issuing business licenses for karaoke bars and dance clubs.

The Ministry of Finance stated that, based on the Law on Fees and Charges and on the proposal of the Ministry of Culture, Sports and Tourism, the Ministry of Finance issued Circular No. 01/2021/TT-BTC. This circular stipulates that the fee collection organization is the state management agency for culture at the district level; and specifies the fee rates in centrally-administered cities and cities and towns under provincial administration.

On April 14, 2025, the Standing Committee of the National Assembly issued Resolution No. 76/2025/UBTVQH15 on the reorganization of administrative units in 2025.

Accordingly, the rearrangement and reorganization of administrative units at all levels and the establishment of a three-tiered local government structure (provincial and commune levels) have affected the regulations on fee collection and the fee rates for assessing and issuing business licenses for karaoke establishments and dance halls as stipulated in Circular No. 01/2021/TT-BTC.

Clause 1, Section V of the Plan attached to Decision No. 1616/QD-TTg of the Prime Minister stipulates: abolishing the assessment fee for granting licenses to operate karaoke services in cities and towns under provincial administration, and reducing the assessment fee for granting licenses to operate karaoke services in other areas. Therefore, the regulations on fee levels in Circular No. 01/2021/TT-BTC need to be amended accordingly.

On June 25, 2025, the National Assembly passed Law No. 89/2025/QH15 on the State Budget (effective from January 1, 2026). The 2025 State Budget Law amended the regulations stipulating that fees collected by state agencies must be fully remitted to the state budget. Therefore, the regulations on the management and use of fees in Circular No. 01/2021/TT-BTC need to be amended to conform with the 2025 State Budget Law.

Regarding the fee payer

According to the Ministry of Finance, Article 2 of Circular No. 01/2021/TT-BTC stipulates: "Enterprises and business households, when submitting applications to competent state management agencies to grant licenses to meet the conditions for operating karaoke services or discotheque services, must pay fees according to the provisions of this Circular.

The fee payer remains unchanged.

Based on the implementation review, the regulations regarding fee payers did not present any problems, and the Ministry of Culture, Sports and Tourism did not propose any amendments. Therefore, this regulation is retained in the draft Circular.

Regarding fee collection organization

The Ministry of Finance stated that Article 3 of Circular No. 01/2021/TT-BTC stipulates: "The Department of Culture, Sports and Tourism; the Department of Culture and Information or the Department of Culture, Information, Sports and Tourism of provinces and centrally-administered cities, or the state management agency for culture at the district level, which is delegated or authorized to issue licenses for karaoke or dance hall services in accordance with the law, shall collect fees as prescribed in this Circular."

On June 16, 2025, the National Assembly passed the Law on Organization of Local Government (amended), which came into effect on July 1, 2025. Clause 1, Article 1 of the Law on Organization of Local Government stipulates that administrative units are organized into two levels, including:

Provinces and centrally-administered cities (provincial level);

Communes, wards, and special zones directly under the provincial level (commune level).

Thus, administrative units below the provincial level no longer include the district level.

Currently, all circulars on fees and charges stipulate that the organizations collecting fees and charges do not mention the specific names of these organizations, but instead cite the provisions of specialized laws to ensure the stability of the legal document and avoid having to amend the circular when there are changes in the organizations collecting fees and charges, as well as when the organizational structure of the units is reorganized.

Therefore, Article 3 of the draft Circular proposes amending the regulations on fee collection as follows: "The competent state agency that issues licenses for karaoke or dance hall business services in accordance with the law on karaoke and dance hall business services is the organization responsible for collecting fees as stipulated in this Circular."

Regarding the fee level

According to the Ministry of Finance, Article 4 of Circular No. 01/2021/TT-BTC stipulates the fee rates as follows:

The average fee for assessing eligibility to operate a karaoke service business is:

From 1,200,000 to 4,000,000 VND per room for centrally-governed cities and cities and towns under provincial administration;

Prices range from 600,000 to 2,000,000 VND per room in other areas.

Meanwhile, the appraisal fee for adding extra rooms is:

2,000,000 VND per room, but the total fee shall not exceed 12,000,000 VND per license per assessment.

1,000,000 VND per room, but the total fee shall not exceed 6,000,000 VND per license per assessment.

According to Clause 1, Article 1 of the Law on Organization of Local Government, administrative units below the provincial level no longer include cities and towns directly under the province. From July 1, 2025, cities and towns directly under the province will be converted into wards and communes directly under the province.

According to the Ministry of Culture, Sports and Tourism: Karaoke and dance hall businesses are mainly located in centrally-governed cities and cities and towns under provincial administration;

Unifying a single fee level (regardless of region) ensures independence from geographical location, guaranteeing consistency, simplicity, and transparency. Therefore, the Ministry of Culture, Sports and Tourism has proposed regulating a single fee level, inheriting the rates in centrally-governed cities and cities and towns under provincial administration.

In the spirit of reducing and simplifying administrative procedures to support and facilitate the production and business activities of people and enterprises, the draft Circular only stipulates one fee level (without dividing the fee by area or by the number of rooms), inheriting the fee for appraisal in cases of adding rooms in other areas, specifically as follows:

The fee for assessing eligibility to operate a karaoke service is 1,000,000 VND per room, but the total fee shall not exceed 6,000,000 VND per license.

The fee for assessing eligibility to operate a dance hall is 10,000,000 VND per license.

Adjusted appraisal fee level:

License for operating karaoke or dance hall services in case of change of ownership: 500,000 VND/license.

The fee for a karaoke business license that includes adding extra rooms is 1,000,000 VND per room, but the total fee shall not exceed 6,000,000 VND per license per assessment.

According to data provided by the Ministry of Culture, Sports and Tourism, in 2024:

Regarding karaoke services: 869 new licenses were issued, and 415 licenses were adjusted.

Regarding nightclub services: 4 new licenses were issued, and 1 license was amended. Therefore, the estimated state budget revenue for 2024 is approximately 8 billion VND.

With the proposed fee levels from the Ministry of Finance, it is projected that the amount collected in 2026 will decrease (by approximately 1-2 billion VND) compared to the amount collected in 2024.

Source: https://baovanhoa.vn/van-hoa/bo-tai-chinh-de-xuat-muc-thu-phi-moi-tham-dinh-cap-giay-phep-kinh-doanh-karaoke-vu-truong-170826.html