Representatives from the industry have called for the measure while speaking to the Dáil's coronavirus committee this afternoon.
Deirdre Hanlon from the Department of Transport says the requirement will be brought in soon.
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"Face coverings are important and we are moving to introduce mandatory face coverings in taxis.
"The first priority was to arrange it for mass transit, which is the buses, trains and trams, where you have larger numbers of people moving together."
The committee also heard that taxi drivers have been hit hard by a lack of trade from live music, pubs and nightclubs.
Four taxi groups have urged the Government to support workers in the sector through grants to help drivers get back into the industry.