'''[[Taxes]]''' refer to funds originating from domestic taxes that are channelled to the sector via transfers from all levels of government; including national, regional and local ([[#GLAAS|GLAAS]], 2012). Such funds would typically be provided as subsidies, for capital investment or operations. “Hidden” forms of subsidies may include tax rebates, soft loans (i.e. loans at a subsidized interest rate) or subsidized services (e.g. subsidized electricity).
==Examples==
Financing flows
The way in which the main financing streams (e.g. taxes, transfers and tariffs) typically circulate in the water and sanitation sector is depicted in figure 2. The main actors involved are the water, sanitation and hygiene service providers, households and domestic governments and development partners.
The dark blue boxes show the financing sources and the light blue boxes show the financing channels for public funding (note that the central government or its agencies may play the role of both financing source and financing channel at the same time) (GLAAS, 2012).
<center>'''Figure 2. Financing flows in water and sanitation sector at national level'''</center>
[[Image:financing sources fg 2.jpg|thumb|center|600px|<center>Source: [[#GLAAS|GLAAS]] 2012 page 79</center>]]
What is missing in the overview of figure 2 (see above) are transfers from donors other than governments such as charitable foundations (including NGOs, decentralized cooperation or local civil society organizations or individuals) to individuals, households, service providers and different levels of governments.
====Financing sources and costs of water and sanitation service delivery====
IRC International Water and Sanitation Centre presented a generalisation (Pezon et.al, 2010, page 7) of how the [[Costs of WASH Service Delivery - Introduction | costs of water and sanitation service delivery]] are covered by the main sources of financing.
<center> '''Table 1. Generalisation of existing financing sources to cover costs of water and sanitation service delivery''' </center>
