The increase is to reflect the rise in operating costs faced by taxi drivers.
Taxi fares are set to increase by an average of 12% from September of this year, the National Transport Authority (NTA) has announced.
It also said that from September, it will be mandatory for all taxis to include a cashless payment option for customers.
In a statement, the NTA said that its Board met on Friday (17 June) where it approved the proposed National Maximum Taxi Fare increase and Small Public Service Vehicle (Cashless Payment Facility) Regulations.
This was following public consultations which concluded towards the end of last month.
“The 2022 Maximum Fare increase is a weighted average of 12% to reflect the increase in operating costs faced by taxi drivers, together with the introduction of the cashless payment facility mandate,” the NTA stated.
“The cashless payment facility regulations will make it mandatory for all taxis to have an in-taxi point of sale cashless payment device and for cashless payments to be accepted for taxi journeys when requested by customers.”
Both changes will be introduced together, taking effect from 1 September.
Earlier this week, meanwhile, Tánaiste Leo Varadkar said that ride-sharing services Lyft and Uber could provide a way of dealing with the current taxi shortage in Ireland.
The Tánaiste made the comments on Thursday after reports of people struggling to find taxis following the lifting of Covid-19 restrictions.
As a result of this, Festival Republic Managing Director Melvin Benn warned on Wednesday that people attending upcoming gigs at Marlay Park should not rely on taxis to get home.