The argument advanced by the SA Local Government Association (Salga) that churches should be taxed has some merit and its feasibility should be investigated further.
Salga in KwaZulu-Natal has called for a review of the current arrangement in which churches are exempt from paying rates.
According to Salga, the Income Tax Act of 1962 exempts churches and schools from paying income tax, and they receive other favourable treatment under tax laws as they hold the status of public benefit organisations.
Salga has also called on the taxman to start a national debate on the current Act as circumstances have changed dramatically.
Churches across South Africa play a significant role in assisting the government tackle social ills and fight poverty, homelessness, drug abuse, counselling the sick and promoting social cohesion. It is true that they have taken up some of the responsibilities that belong to the state.
Without churches, society would easily descend into chaos, so the importance of their role in society cannot be overlooked.
However, it is also true that churches have become more prosperous in recent years, with some controlling massive budgets.
While some own thousands of hectares of land, others have built themselves gigantic churches which could not have come cheap.
The flashy lifestyles of church leaders, evident in the cars they drive and the multi-million mansions they live in, is proof enough that the debate about churches paying taxes is not really misplaced.
Having said that, we do not believe in a blanket approach when this policy is finally implemented, as the financial position of these religious institutions is not the same. While some churches have healthy budgets due to the social standing of their congregants, others collect meagre collections which barely cover the pastor’s salary. It would therefore not be fair to tax such churches.
Therefore, a careful analysis of which churches can afford to pay taxes and which ones cannot, needs to be done before this policy gets a stamp of approval.
The Mercury