Italy’s Catholic Church will be forced to pay taxes starting in 2013 after the EU pressured the country’s government to pass a controversial law stripping the Church of its historic property tax exemption.
The Catholic Church in Italy is excluded from paying taxes on its land if at least a part of a Church property is used non-commercially – for instance, a chapel in a bed-and-breakfast. “The regulatory framework will be definite by January 1, 2013 – the start of the fiscal year – and will fully respect the [European] Community law,” Italian premier Mario Monti’s government said in a statement on Tuesday.
The move could net Italy revenues of 500 million to 2 billion euros annually across the country, municipal government associations said. The extra income from previously exempt properties in Rome alone – including hotels, restaurants and sports centres – could reach 25.5 million euros a year, La Repubblica daily newspaper reported.