indirect local taxes
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Local governments may impose indirect taxes to generate revenue directly for the financing of wastewater systems. For example, authorities may recover sewerage investments through surcharges on property taxes. In general, these are levied only on properties with access to the sewer system, in which case the surcharge is actually a variant of the user charge. The limitation of this surcharge is that it depends on the performance of the property tax system, which is usually not (well) developed in low-income countries. In many countries, the money collected from wastewater discharge is not always earmarked for water infrastructure. It normally goes in to the national treasury, and then may be used for other services.
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