Don Bosco Philippines South Province

A few weeks ago I was dismayed like all others when the Philippine Government imposed a 12% value-added tax on digital goods. I know that the government has the sovereignty to impose it but knowing the level of corruption and actual return of taxes, I cannot help but be heavy hearted.

Many times Church critics would often say that the Church should be taxed. The truth is it is. We in the Church pay our own share of taxes, although, and this is where the nuance is, there are exemptions for it.

The tax exemptions for religious purposes is not limited to the Catholic Church. In Philippine Law, any non-stock, non-profit and religious institutions enjoy several tax exemptions. The power to tax philosophically is the power to control. Therefore it is enshrined in our Constitutions that religion should not be taxed as it would tantamount to control of religion and therefore an impingement on the right to religious freedom. We deny the government the power to control how we practice our faith.

These tax exemptions are broadly categorized into three: real property tax, income tax, and donor’s tax.

Religious institutions are exempt from paying real property taxes if the property involved is used for religious purposes. We deny the government the power to restrict where we pray.

Religious institutions are exempt from paying income taxes if the income collected by the Church is used for charitable and religious purposes. We deny the government the power to restrict how we pray and do charity.

Donors to religious institutions are exempt from paying donor’s tax for the purpose of supporting its religious activities. We deny the government the power to restrict support for the Church.

Religious purposes is one of the main reasons for the exemption, because we know that religious institutions are institutions of charity. What the Church gathers is meant for the faithful.

Yet for other parts of its life, the Church does indeed pay taxes. We pay our taxes in utilities: electricity, water, telecommunications, data; and other services subscribed by the Church. We pay taxes when we buy goods, do logistics and procure materials for the Church. Even the upkeep of the Church is taxed! It is a lie when critics say that the Church does not pay her taxes.

In writing this, I do not absolve the reality that there is also corruption in the Church and even among the clergy. Yes it is true that some clergy have enriched themselves with the treasures of the Church, and it is a wound that must be cauterized and healed. God will judge them for the misuse of Church resources. But it is also true, and I have seen it for myself, that many among, and more than the abusers, members of the Church have faithfully lived the poverty and service of Christ.

I pay for the Netflix subscription of the Salesian community (which is shared with the youth center) and I feel the pain of having to pay 12% more from now on. The software services that our schools have availed, the internet domain registrations that I hand in social communications were not spared by the onslaught of taxation by the government. The goods and products I order online suffer the same. So, yes, the Church pays her own share of taxes.

Disclaimer: This section of the website is a personal creative writing of the author and does not necessarily reflect the official views, opinion, or policies of the Salesians of Don Bosco – Philippines South Province. For concerns on the content, style, and grammar of this piece, please contact us.