For the first time a Church activity is taxed. Measure comes after Catholics criticise government corruption and embezzlement.

Manila (AsiaNews/Agencies) – The Filipino government plans to tax rosaries and all commercial activities by religious organisations. Reaction to the measure in the predominantly Catholic country has been mixed.

Senator Joker Arroyo, of the ruling Lakas Party, voiced suspicion over the timing of the announcement. In his view, the decision comes just when the Church is becoming increasingly critical of Filipino President Gloria Macapagal-Arroyo. Moreover, it represents a break with the past since the church has never been taxed since it arrived in the country.

By contrast, Eddie Villanueva, leader of the Jesus Is Lord evangelical movement, which has a large following in Hong Kong, said such activities should be taxed.

The new tax comes in the wake of other, similar initiatives designed to stem the growth of the national debt which now stands at 3 trillion pesos (US$ 60 billion).

As part of these initiatives, the government floated a proposal in June 2004 to tax cellphone SMS. However, it was met by vocal opposition from Mgr Oscar Cruz, Bishop of Lingayen-Dagupan, who publicly slammed the idea, asking where all the tax revenue was going.

In the Philippines, the tax burden, especially on essential goods such milk, sugar and coffee as well drugs and health care, is rising rapidly. The cost of gas and electrical power are also going up, whilst wages stagnate.

Corruption among government officials and public corporations has become an endemic problem in the country and elicited criticism from the Church.

A World Bank report estimates in fact that in the last 25 years the Filipino government lost some US$ 31.5 billion to corrupt and crooked practices. However, no real figures exist as to the cost of influence peddling involving political leaders.

• philippines
• catholic
• church
• tax
• corruption
• fiscal
• crisis