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19:59, 27 August 2014 Wednesday
Update: 12:43, 13 October 2012 Saturday

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Church to lose property tax exemption in Italy
Church to lose property tax exemption in Italy

Italy’s Catholic Church will be forced to pay taxes starting in 2013 after the EU pressured the country’s government

World Bulletin/News Desk

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, Russian Today reported..

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, according to the report. 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.

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.

Two years ago, the EU began to investigate whether the tax privileges of some Church properties in Italy could be considered illegal state aid.



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