Delta Reviews Tax Laws To Include Churches

In the face of the increased tax drive in Delta State, revelations have emerged that religious institutions in the state that have extended their operational details beyond the ‘exemption clause’ as specified in the constitution for ecclesiastical industries, will now be taxed accordingly.

The revelation stipulates that religious institutions that have diversified their scope of operations to other areas such as the acquisition of lands, ownership of schools, cars, business outfits among others in the name of the institution will be taxed for such property.

The chairman, taskforce on ground rent in the state Board of Internal Revenue, Chief (Barrister) Frank Nwugo told our correspondent in Asaba at the weekend that the exemption clause as contained in the constitution only exempts religious institutions from paying tax on their earnings such as offerings, tithes, and donations.

Nwugo who is also the Delta North representative at the board enjoined Deltans not to see the new tax regime as a punitive measure by government, but a constitutional enforcement of the peoples’ civic responsibilities, adding that the desired economic development in the state requires both government and individuals participation.

While dismissing the perceived lack or poor infrastructural development by government as anticipated by the larger public should not be a justifiable reason for tax evasion by individuals. Nwugo, however, challenged governments at all levels to justify the peoples’ tax by exhibiting good governance.

His words, “Delta State is for all of us; if we want the state to make some economic progress, then we should be prepared to voluntarily pay our taxes. Government cannot do it alone, neither will individuals be able to achieve results alone; it requires the cooperation of both the government and individuals to move this state forward.’

“Sometimes I hear people ask whether it is lawful for religious institutions to pay tax, why not?. The personal income tax law of the Federation, section 73 talks about the exemption clause which specifies ecclesiastic industries- their earnings; offerings, tithes and perhaps donations.

“But a church that owns land, for instance, must pay tax for that land. The reason is because that land by law of the Federal Republic of Nigeria does not belong to that church, but the government. Ground rent again, for instance, is an indirect tax. If you have land whether it is for an individual or corporate body, then, you must pay tax for that land.

“The exemption clause, as I told you earlier that applies to the ecclesiastic, has nothing to do with ground rent. Any church for instance, that owns a school must pay tax for that school and the earnings of that school must be paid for.”

By the grace of God, I am an ordained worker of a church as well as a lawyer. Therefore, I know what the bible says and what the law says about tax. Even the bible records that Jesus Christ Himself paid, Nwugo explained.