The Church of Greece said last week that it is not willing to pay for “other people’s mistakes” in response to a recent government decision to impose a one-off property tax on its real estate holdings.
The Finance Ministry earlier this month announced the introduction of a levy on major companies and property owners to raise 1 billion euros. But the Church, one of Greece’s largest landowners, believes it is being unfairly treated.
“There is no war or disaster that requires our contribution,” said Bishop Theoklitos of Ioannina, who presides over the Church’s financial committee. “Instead, we are being called on to contribute because of failed economic policies. We refuse to pay for other people’s mistakes.”
According to an internal report on the Church’s finances, which was handed to its head Archbishop Ieronymos in August, the institution made more than 7 million euros profit in 2008.
Almost 20 million euros of revenue flowed into the Church’s coffers last year, mostly from the renting out of church property. It also earned some 4.5 million euros from investments.
During 2008, the Church spent almost 12.5 million euros. The biggest outlay, just over 4 million euros, was for sponsoring events. Almost 4 million was spent on salaries.
However, Theoklitos said that the one-off tax would threaten the existence of more than 800 charities that are funded by the Church.
“It is misleading for the government to say that it is taking from the Church to give to the needy,” he said. “They are taking from the needy to give to the needy,” he added.
Theoklitos objected to the fact that the Church is designated as a charity, which means that it will have to pay three times as much tax as some other landowners. “We are not a charitable foundation, we are a social institution,” he said. “We told the [finance] minister that he is treating us unfairly.”
According to the bishop, the Church of Greece owns property that is worth over 700 million euros and has a portfolio of shares worth some 9 million euros.