The fee for plastic shopping bags in England will be doubled to 10p and extended to all shops from April 2021.
Small retailers - those employing 250 people or fewer - will no longer be exempt, the Department for Environment, Food and Rural Affairs (Defra) said.
According to Defra, since the charge was first introduced in 2015 it has successfully prevented billions of plastic bags being sold and ending up in the ocean and environment.
Government data shows the current levy, which stands at 5p and applies to any retailer employing 250 or more people, has led to a 95% cut in plastic bag sales in major supermarkets since 2015.
Commenting on the announcement, Environment Secretary George Eustice, said: 'We have all seen the devastating impact plastic bags have on the oceans and on precious marine wildlife, which is why we are taking bold and ambitious action to tackle this issue head on.
'The UK is already a world-leader in this global effort, and our carrier bag charge has been hugely successful in taking billions of harmful plastic bags out of circulation. But we want to go further by extending this to all retailers so we can continue to cut unnecessary waste and build back greener.'