The Church is only a beneficiary of the law on tax exemption, says CBCP exec

An official of the Catholic Bishops Conference (CBCP) on Thursday said the Church is simply a beneficiary of the constitutional provision on tax exemptions for religious institutions.

"'Yung exemption na tinatawag nila sa pagbabayad ng buwis, katulad ng simbahan, hindi naman ginawa ng simbahan 'yan," CBCP Public Affairs Committee Executive Secretary Fr. Jerome Secillano said in an interview on radio dzBB.

"'Yan naman ay nasa batas. Hindi naman gumawa ng batas ang simbahan. Kung sakali man na meron ngang exemption, beneficiary ang simbahan dito. 'Yun ang malinaw," he said.

Secillano issued the statement on the heels of a proposal by House Speaker Pantaleon Alvarez to review the tax exemptions given to religious institutions.

Article VI, Section 28 (3), of the 1987 Constitution states that “Charitable institutions, churches and parsonages or convents appurtenant thereto, mosques, non-profit cemeteries, and all lands, buildings, and improvements, actually, directly, and exclusively used for religious, charitable, or educational purposes shall be exempt from taxation.”

Contrary to claims that the exemptions are absolute, Secillano said the Church pays its taxes, including the withholding tax and income tax on its businesses.

"Ang simbahan ay nagbabayad naman na ng buwis. Halimbawa, yung mga binabanggit na mga business na 'yan, meron 'yang mga witholding tax. Meron ding tinatawag na income tax. Binabayan ng simbahan 'yun. Hindi naman 'yan 'yung absolutely na walang binabayaran na tax ang simbahan," he said.

As for the tax exemption on schools, Secillano said not only Catholic schools are exempted but schools of other religions as well.

"Hindi lang naman ang Catholic schools ang exempted. Ang lahat ng mga paaralan yata, sa aking pagkakaalam lang, dahil 'yan ay isang ... kumbaga, public service din naman ang edukasyon," Secillano said.

According to Article XIV, Section 4(3), of the Constitution, "all revenues and assets of non-stock, non-profit educational institutions used actually, directly, and exclusively for educational purposes shall be exempt from taxes and duties. Upon the dissolution or cessation of the corporate existence of such institutions, their assets shall be disposed of in the manner provided by law."

Morever, Article XIV, Section 2(4), provides that "subject to conditions prescribed by law, all grants, endowments, donations, or contributions used actually, directly, and exclusively for educational purposes shall be exempt from tax."

Willing to pay

As long as it's not go against the Constitution, Secillano said the Church is willing to pay obligations to the government should Congress approve the measure.

"Kung sakali man darating 'yung panahon na i-ta-tax 'yung simbahan o kung ano pa man ang dapat bayaran ng simbahan, palagay ko naman ang simbahan ay isang institusyon na hindi naman din, kumbaga, uurong sa ganyang obligasyon kung sakaling' yan ay matutuloy," Secillano said.

"Kung may batas ay susunod ang simbahan. Kung sinasabi ng batas na magbayad ay magbabayad naman 'yan. Hindi naman 'yan 'yung tipong ganon-ganon na lang na mag-pa-pa-exempt. Nakakahiya din naman sa taong bayan," he added. — Joseph Tristan Roxas/VDS, GMA News