Philippine President Gloria Arroyo yesterday shot down proposals to tax churches and religious groups, as the government sought ways to deal with a debt crisis.
Several politicians in this mainly Roman Catholic nation have floated the idea of taxing churches to raise state revenues to a level that would enable Manila to repay debts of 3.36 trillion pesos (about US$60 billion) as well as enjoy a budget surplus.
"The church is the guardian of the spiritual welfare of the Filipino people and charitable work is part of its mission to uplift the moral and spiritual foundations of our society," Arroyo said in a written statement.
"This should be placed beyond the pale of monetary matters and we do not agree to taxing the church," she said.
Imposing taxes on religious groups would require amendments to the 1987 constitution, which exempts churches and religious groups from taxation in regard to their religious, charitable and educational activities.
Manila legislator Bienvenido Abante proposed the tax during a television talk show, though there is no bill filed in Congress.
Justice Secretary Raul Gonzales told reporters on Friday that activities and properties of the church not used for religious purposes should be taxed.
The Roman Catholic archbishop of Manila, Gaudencio Rosales, said the proposal was "irrational" because the church was a non-profit organization.
He said church entities already paid taxes when they were involved in activities not covered by exemptions.
"Taxing baptisms, marriage, et cetera is irrational. How do you tax that?" he said.
Economists have warned Manila risked an Argentina-style debt default and political and economic chaos within three years.
Arroyo said the government already had a "detailed and concrete action plan on how the fiscal crisis could effectively be averted," and "we are not turning to the church or other religious groups as a source of revenue."