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Italy plans to tax Vatican on commercial properties | Italy plans to tax Vatican on commercial properties |
(3 days later) | |
Italy's Catholic Church faces an annual multi-million euro bill over government plans to strip it of its tax-exempt status. | Italy's Catholic Church faces an annual multi-million euro bill over government plans to strip it of its tax-exempt status. |
Prime Minister Mario Monti has announced the Vatican must pay taxes on non-religious property, from which it previously enjoyed an exemption. | Prime Minister Mario Monti has announced the Vatican must pay taxes on non-religious property, from which it previously enjoyed an exemption. |
The annual cost could be up to 720m euros ($945m; £598m) according to municipal government bodies. | The annual cost could be up to 720m euros ($945m; £598m) according to municipal government bodies. |
Italy's Catholic Church has 110,000 properties, worth about 9bn euros. | Italy's Catholic Church has 110,000 properties, worth about 9bn euros. |
It includes shopping centres and a range of residential property. | It includes shopping centres and a range of residential property. |
In December, the government reintroduced a tax paid by anyone who owns land or property in Italy - which the Church does not pay. | In December, the government reintroduced a tax paid by anyone who owns land or property in Italy - which the Church does not pay. |
But a growing wave of Italians are opposed to what they see as special privileges in the face of a tightening economy. | But a growing wave of Italians are opposed to what they see as special privileges in the face of a tightening economy. |
Following their government's latest austerity measure package, more than 130,000 people signed an online petition calling for the Church's tax exempt status to be revoked. | Following their government's latest austerity measure package, more than 130,000 people signed an online petition calling for the Church's tax exempt status to be revoked. |
Since 2005, church-run groups and organisations have not been classed as official commercial bodies and have been exempt from paying property tax. | Since 2005, church-run groups and organisations have not been classed as official commercial bodies and have been exempt from paying property tax. |
According to the Corriere della Sera newspaper, tax authorities will calculate how much of a property is used purely for religious purposes and tax it proportionately. | According to the Corriere della Sera newspaper, tax authorities will calculate how much of a property is used purely for religious purposes and tax it proportionately. |
This means a church would remain exempt but a chapel which operates an hostel would pay tax accordingly. | This means a church would remain exempt but a chapel which operates an hostel would pay tax accordingly. |
Earlier this week, new figures showed Italy has entered recession, after two consecutive quarters of negative growth between July and December 2011. |
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