Cape Town - The argument advanced by the SA Local Government Association (Salga) in KwaZulu-Natal regarding the taxation of churches has some merit, and its feasibility should be investigated further.
According to Salga, the Income Tax Act of 1962 exempts churches and schools from paying income tax, and they also receive other favourable treatment under tax laws as they hold the status of public benefit organisations.
Salga has 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 and drug abuse, and in 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 churches own thousands of hectares of land, others have built gigantic churches that could not have come cheap.
The flashy lifestyles of church leaders, evident in the cars they drive and the multimillion-rand 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 that barely cover the pastor’s salary.
It would 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 the stamp of approval.
Cape Times