Published: 13 October, 2012, 11:38
The Basilica of St. Bartholomew, located on the island Isola Tiberina in Rome. (AFP Photo / Vincenzo Pinto)
Italy’s Catholic Church will be forced to pay taxes starting in 2013 after the EU pressured the country’s government to pass a controversial law stripping the Church of its historic property tax exemption.
The Catholic Church in Italy is excluded from paying taxes on its land if at least a part of a Church property is used non-commercially – for instance, a chapel in a bed-and-breakfast.
“The regulatory framework will be definite by January 1, 2013 – the start of the fiscal year – and will fully respect the [European] Community law,” Italian premier Mario Monti’s government said in a statement on Tuesday.
The move could net Italy revenues of 500 million to 2 billion euros annually across the country, municipal government associations said. The extra income from previously exempt properties in Rome alone – including hotels, restaurants and sports centers – could reach 25.5 million euros a year, La Repubblica daily newspaper reported.
On Monday, the Council of State, Italy’s highest ranking court for administrative litigation, ruled against the new law. Authorities stepped in, arguing that everyone in Italy should pay property tax, including the Church.
The measure came after the country’s leadership decided in February to alter Italy’s property tax code, ending the Church’s longstanding privileges due to the severe debt crisis.
Last December, after new austerity measures were adopted in the country, 130,000 Italians signed an online petition urging the government to strip the Church of its tax exemption.
“It was time that they paid, too, with all the exemptions they’ve had throughout the years,” Marco Catalano, a 35-year-old shopkeeper in Rome, told the New York Times in February, adding that he goes to church twice a month. “They own the most beautiful buildings in downtown Rome, on Italian soil, and rent them out at market prices. They don’t give them for free or at low prices for charity.”
Two years ago, the EU began to investigate whether the tax privileges of some Church properties in Italy could be considered illegal state aid.
Finally, the business of “church” should pay their fair share as well. A great sign and hopefully this new law will spread far and wide across the entire globe. I wonder how many “church” organizations will be left standing if they have to pay taxes like the rest of us????
Hmm. This could be seen as some sort of bribe. Maybe vatican hoping some of its other crimes will go away if they cross the palm of the Italian gov. with silver?
On the other hand, maybe it is just more wrongs being righted.
I hope it is the latter.
At last a good sign!
It seems, but what if the EU is using this as part of “end of nationality” and slowly intergrate them into the EU?
And what if the Pope and the Black Pope, the Jesuits, ringleaders of the Cabal, themselves get off free with their manipulations or get special privileges? And it is the priests who do not know of this conspiracy that suffers for it?
Italy is already an EU member country, using the common currency, the Euro.