Minister for Finance Michael McGrath has confirmed that the bank levy will be extended as part of Budget 2024.
The measure, which has been in place since 2014, was introduced in the wake of the global financial crisis and designed to ensure that banks made a contribution to the recovery of the economy after the bailout.
The charge, which was due to conclude at the end of this year, has already been extended on several occasions.
It had an annual yield of around €150 million but in more recent years it has raised €87 million annually.
To date, it has collected almost €1.4 billion for taxpayers.
Minister McGrath said the scope and the rate of the levy will be considered in advance of Budget Day in October.
A review of the scheme has been conducted in recent months.
Speaking to RTÉ News, Minister McGrath said: "In light of the level of profitability that the Irish banks are enjoying at this point in time, I do believe that it is appropriate that the levy will be extended into 2024 and I will be recommending that to Government."
However, he said "the final detail about the scope of the levy, how much we intend to collect and indeed a duration that the levy will be extended for are matters that remain under consideration and will be finalised and announced on Budget Day."
There have been calls on the Government to introduce a windfall tax on banks.
Read more: 'Laggard' banks criticised over interest rates for savers
The minister said he has monitored developments in a number of European countries which have introduced a windfall tax on banks.
"In Ireland we already have a levy, which is due to end at the end of this year, which I will now be extending and I think it is the most appropriate way in which we can determine what is the correct contribution by the financial sector to taxpayers and the Exchequer next year," he said
The minister said the bank levy "is the channel and the vehicle that I as minister and the Government would intend to use".
He also said the Government is "acutely conscious of the impact on mortgage holders of the dramatic increase in interest rates that we've seen over the last year or so".
"We know that many households are struggling and are really hurting," he added.
He said the Budget will "very much focus on the cost of living and on helping people" and he said there will be a range of options on both the taxation side on and the expenditure side "through which we will seek to provide help and assistance to people".
However, when asked if any measures to help mortgage payers are planned, Mr McGrath said "at this point, it's too early in terms of any specific decisions or any specific measures, we haven't decided on yet, but all of this remains under consideration in the lead up to the Budget in October".
