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Monday, March 19, 2012

Gov't mulls levying taxes on clergy: finance minister


South Korea's finance minister has said the government is considering levying taxes on the clergy as part of an effort to ensure equitable taxation.

In a interview aired by a local cable TV network on Monday, Bahk Jae-wan said the government is weighing the option of whether to discuss levying taxes on clergy during upcoming deliberations to reform the country's tax codes for this year.

"In principle, priests, ministers and monks should not be exempted from paying taxes on their earnings," he said. "In the past, the country was lax in terms of collecting taxes but there is a need for change."

Bahk conceded the country has not tried to collect taxes from clergy previously out of respect for their social role. He said asking them suddenly to pay taxes may not be easy.

"There is also the need to take into consideration how best to deduct expenses incurred by religious activities," he said.

Seoul has not committed to asking clergy to pay taxes due to the backlash such a move could trigger.

Seoul first brought up the option of taxing clergy members in

2006 when the National Tax Service sent a memo to the finance ministry to investigate the feasibility of such a move.

Reflecting the controversy the minister's comments may cause, the finance ministry stressed it has no plans to review levying taxes on the clergy during its tax policy review this year.

Bahk's comments only outlined the government stance of not allowing tax exceptions as policymakers scramble to increase state revenue in the face of rising demand for greater social welfare payouts, it added. (Yonhap News)

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