A new charge on all new petrol and diesel cars is expected to be introduced in next week's budget.
Reports suggest the new environmental health surcharge would be linked to nitrogen oxide and other pollutants.
The Department of Finance had already earmarked an environmental health surcharge for vehicles as a potential new policy.
But according to the Irish Times, sources close to Minister Paschal Donohue say he's likely to announce it next week.
The charges would be linked to nitrogen oxide and other pollutants, and would apply on the "polluter pays" principle.
That means higher surcharges for higher-emitting cars.
An average new diesel car, with an NOx level of 43mg/km, would face charges of €215, €323 and €430 respectively.
The average new petrol car would face €115, €173 and €230, and the charge would likely be significantly higher for used imports.
Minister Donohue will reveal Budget 2020 next Tuesday.