New Delhi, Feb. 6 -- The government's indirect tax collection is expected to increase by 8.3 pc in the financial year 2025-26 (FY26), according to a report by ICICI Bank.

The report also noted that this growth is higher than the 7.1 per cent increase seen in FY25 and is mainly driven by rise in GST revenue from strong urban consumption.

It said "The increase is driven by higher goods and services tax collections which in-turn is explained by boost to urban consumption".

With the economy improving, corporate tax collections are also expected to grow at a much faster pace. The report estimated corporate tax collection to rise by 10.4 per cent in FY26, compared to a 7.6 per cent increase in FY25.

On the expenditure side, the government's...