Alvarez : Church-run Schools should be taxed

Manila, Phillippines - House Speaker  Pantaleon Alvarez suggested that it's now high time that church-run schools should be taxed. 

The issue have been raised during the hearing of House of Representatives Ways and Means Committee attended by a power house of Cabinet Secretaries. The hearing is about the proposed amendment of the current tax  system that seeks to lower the personal income tax, raise the excise tax and expand the value-added tax. 

“Yung religious schools, those registered as non-stock, non-profit. Naniniwala ba tayo dun? Kahit sino pwede magdeclare ng non-stock non-profit para hindi makapagbayad ,” Alvarez said.

(Those religious schools registered as non-stock, non-profit. Do we even believe them? Any school may register as non-stock non-profit to evade paying taxes.)

He further added that, “Itong mga schools na ito, they dont cater for the poor. Palagi nag-i-increase ng tuition fees yan. Ibig sabihin, hindi yan non-stock non-profit. Profitable business yan,”

(These schools don't cater for the poor. They always increase their tuition fees. That means they are not non-stock, non-profit. It's a profitable business.)

According to Section 28 (3) under Article VI or the Legislative Department, “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.” That makes all church-run and funded schools to be exempt from any taxes. 

Secretary Ernesto Pernia said, "Revenue from tuition, they are not taxed. But they have revenue from commercial activities. Those are taxed." The current constitution only allows the commercial properties of these schools to be taxed. All other properties used for educational and religious purposes are not. 

However, we cannot deny that religious schools are way more expensive than normal private schools. The same services are being offered in normal private schools at a lower tuition rate and yet, they are paying taxes to the government. Does it sound fair? 

Alvarez also stressed the need to look into the stocks of these religious institutions that run up to billions. He urged the Bureau of Internal Revenue to submit the  income tax returns of these schools to the committee. BIR Commissioner Caesar Dulay that the ITRs can be submitted in their executive session. 

After the hearing, Speaker Alvarez was asked if he is doing this as a retribution to the Catholic Church for their criticisms to the current government. He denied the allegation and further explained that he just wanted to help fix the taxing system. 

If this constitutional amendment will be approved, there will be an increased cash flow for the country and more projects can be implemented. These religious institutions have been receiving special treatment for several decades already so it's about time to impose equality in the society. That's what we all have been fighting for anyway these days.