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Taxes refer to funds originating from domestic taxes that are channelled to the water and sanitation sector via transfers from all levels of government, including national, regional and local ([[#GLAAS|GLAAS]], 2012). Taxes are typically used as subsidies or grants, for [[Capital Expenditure (CapEx)| capital expenditure]] or [[Operational and Minor Maintenance Expenditure (OpEx)|operational and minor maintenance expenditure]]. More "''hidden" '' forms of these subsidies may include tax rebates (e.g. on toilet construction materials), soft loans, transfers from local government housing taxes, donations, subsidised inputs (e.g., electricity services), or “dormant” ''dormant'' equity investments (Hervé-Bazin, 2012).
Subsidies from the national tax base include: <br>
* Subsidies to infrastructure owners
Most lower-income countries do not collect enough tax at decentralised levels of governance to finance infrastructure construction (, e.g. [[Capital Expenditure (CapEx)|capital expenditure]]) (IRC and WSUP, 2012). Most taxes in lower income countries are collected at national level and distributed to the different regions , according to an allocation formulae; and in general . Generally, allocations for water and sanitation are very limited (WHO, 2010).
==Examples==
==Links==
[http://www.irc.nl IRC International Water and Sanitation Centre] is a knowledge broker, innovator and catalyst of change within the water, sanitation and hygiene (WASH) sector working internationally and in selected focus countries and regions. IRC seeks to extend WASH services to the less privileged, while ensuring that services are based on the sustainable use of water resources, are appropriately managed, and are better governed. IRC works in partnership with governments, the public and private sector, Dutch and international organisations, UN institutions, development banks and non-governmental networks and organisations.
<div id="GLAAS">'''GLAAS'''</div>
[http://www.who.int/water_sanitation_health/publications/glaas_report_2012/en/index.html Global Analysis and Assessment of Sanitation and Drinking-Water (GLAAS)] is produced every two years by the World Health Organization (WHO) on behalf of UN-Water. It provides a global update on the policy frameworks, institutional arrangements, human resource base, and international and national finance streams in support of sanitation and drinking-water.
