Move to delay religious taxation draws fire

Civic organizations oppose move to delay taxing religious leaders, Wednesday, at a press conference held in front of the Financial Supervisory Service education center. / Yonhap

By You Soo-sun

Civic organizations chastised Rep. Kim Jin-pyo’s proposal to delay the enactment of a law that would tax religious leaders. Civic and some religious organizations held a press conference, Wednesday, urging immediate enactment of a revision in the law that would implement the tax beginning 2018.

The revision to the Tax Law was passed by the National Assembly in 2015 after prolonged resistance from religious leaders who are known to hold powerful influence over politicians. Under the revised law, clergy members will have to abide by the new taxation regulations imposed that would tax them at between six percent and 38 percent according to their incomes.

But Kim, a member of the Democratic Party of Korea, is allegedly looking into ways to delay its enactment until 2020. Kim, known as a devout Christian and an elder at a protestant church, told reporters Sunday the law revision should be further put on hold as it could stir conflicts and tension. He believes more time should be given for preparation, and is collecting signatures from fellow lawmakers who share his view.

His statement is drawing a fierce backlash from civic organizations, including the Korea Taxpayers’ Association, the Korea Institute for Religious Freedom and other religious organizations. Only the Communion of Churches in Korea, an alliance of some protestant churches, welcomed his statement. Opposing organizations held a press conference, Wednesday, in front of the Financial Supervisory Service education center in Jongno, downtown Seoul. Rebuking Kim’s statement, they urged that taxes should be imposed immediately.

“Tax exemption for religious leaders has been a deep-rooted evil practice in our society,” they said. “Taxes should be immediately imposed on all religious leaders.”

According to the Coalition for Economic Justice (CCEJ), a civic group that has long advocated taxing religious leaders, Korea stands as the only OECD member country that exempts the clergy from taxes.

“Religious leaders should be treated no differently from other citizens,” a CCEJ representative said.

According to the CCEJ, the National Tax Service already has the system in place to follow through with the original plan.

In addition, the CCEJ further advocates taxing clergy based on the income tax standards applied to other citizens rather than using a separate clause that has more lax standards.

Park Kyung-mi, professor of Christian Studies at Ewha Womans University, said the situation is equivalent to corporations resisting tax hikes.

“They put forward religious reasons, but it doesn’t make sense,” Park said. “There are so many privileges enjoyed by pastors at megachurches, and they don’t want to let that go,” she said.

Park, however, warned against generalizing the problem to all Protestant churches and pastors.

“These churches only constitute perhaps 10 to 20 percent of all churches. Many pastors I know make less than an average company employee. Many suffer financially,” she said.