Drivers of large-engine cars seem set to be hit by a significant rise in motor tax.
Sources close to Minister for the Environment John Gormley have confirmed that he is planning to introduce the increase by the end of the year to ensure that bigger polluters pay.
For some time the Government has been working on a system devising motor taxes based on the amount of emissions produced by individual vehicles.
In the meantime, Minister Gormley intends to increase the motor tax on larger engine vehicles.
It is understood the increases could be 10% and will hit cars with 1.6 engines or above.
It is also expected the increases will complement anticipated changes to vehicle registration taxes in the Budget.
The principle behind both measures is to make those creating higher emissions pay for the pollution.
The Society of the Irish Motor Industry says it supports initiatives that will bring about lower emissions but says incentives and not penalties will bring about that change.
The news has been welcomed by Friends of the Earth which has now urged the Government to go a step further and introduce a carbon tax across the economy.
