THE Catholic Bishops Conference of the Philippines shrugged off possible revocation of the tax privileges of the Catholic Church and other religious institutions that engage in politics as floated by Speaker Prospero Nograles.

The church, its lands, and the institutions under its auspices such as schools and broadcast stations are tax-free.

"Alisin ang tax exemption? Mangangailangan tayo ng pag-babago sa Saligang Batas," said
Msgr. Pedro Quitorio, CBCP spokesman.

Section 28, Article IV of the Philippine Constitution states that, “charitable institutions, churches and personages or convents appurtenant thereto, mosques, non-profit cemeteries, and all lands, buildings, and improvements, actually, directly, and exclusively used for religious charitable, or educational purposes shall be exempt from taxation.”

House of Representatives speaker Prospero Nograles said that he will “look into the possibility of lifting the tax privileges for religious organizations which are involved in politics.”

Nograles cited the US Internal Revenue Code which prohibits institutions availing of tax privileges from “conducting lobbying activities and in participating and intervening, directly or indirectly, in political campaigns.”

He said that in other countries like the United States, the Church is "stripped of its tax privileges" once it enters the political arena.

Nograles' statement was seen as a veiled threat to the Church following the call of Archbishop Angel Lagdameo, CBCP president, for a "new brand of people power" amid fresh calls for President Arroyo's resignation.

"Huwag niya panakot sa amin iyan. As Jesus said, ‘Give to Caesar what is due to Caesar and give to God what is due to God.’ Taxation is due to Caesar pero at the same time, dapat may accountability yung nakaupo sa government. Kung hindi sila naglilingkod ng maayos, wala silang karapatan mangolekta ng tax at karapatan ng mamamayan na hindi magbayad ng tax," said Fr. Joe Dizon of Solidarity Philippines.

He said the only reason the churches have the tax exemption is because it is provided by law.

"We preach good citizenship and if the law provides that we have to pay taxes, then, we have to. Basta provided by the law, we will conform,” he added.

Quotorio said many of the dioceses do not avail of the tax exemption anyway.

"In fact, lahat ng mga religious nata-tax indirectly. Yung CBCP, hindi exempted. Para ma-exempt kailangan humingi ng permit, hindi automatic. Si Archbishop Oscar Cruz of Lingayen-Pangasinan, nata-tax siya. Hindi siya humihingi. Marami rin ibang dioceses ang hindi nanghihingi," Quitorio said.

Nograles later clarified that he was not proposing to scrap the tax shields of religious groups. He said he was only “reacting to a question raised by the media where he was asked if it is worth looking into the possibility of lifting the tax privileges for religious organizations which are involved in politics.”

“Studying and proposing are two different species,” he said in a statement today. “We can even study the possibility of sending Filipinos to Mars but it doesn’t mean I am proposing it. Any proposal is worth studying but it’s entirely a different story when I say that I’m advocating it.”

“Let it be understood that I’m not proposing it or even advocating it. Personally, I believe that any study on this issue however will be most welcome.”

CBCP chair for public affairs Bishop Deogracias Yniquez said that the government’s motive in reviewing the Catholic Church’s tax exemptions is suspect. He said that the government was scaring its critics like what it did to the businessmen, referring to earlier reports that the Bureau of Internal Revenue will haunt members of the Makati Business Club, which had called on the President to resign.

The Church is expected to lead more meetings with civil society groups before the February 29 interfaith prayer rally.