Church and Taxes: AAC’s financial activities become subject of debate in Parliament

By NAIRA HAYRUMYAN
ArmeniaNow correspondent
26.10.11

The feasibility of taxing church property has become a subject of heated debate this week as Armenian lawmakers adopted in the first reading an amendment to the tax laws that grant some privileges to the Armenian Apostolic Church (ACC).

Relevant draft amendments have been submitted by the Government, whose head Tigran Sargsyan is known for his religious attitudes and has repeatedly in public advocated Christian ideas. No one has criticized the head of the Armenian government for disseminating Christian values, but accusations have been heard against him that he is violating the Constitution by trying to strengthen financial bonds between the AAC and the State and intending to create a clerical state (the Armenian Constitution says the Church is separated from the State).

Parliament Speaker Hovik Abrahamyan made remarks regarding the draft law. He said that the adoption of such amendments could deprive the community of a major source of income. But in response a representative of the government said that the Church has not paid for its property also before and, therefore, formalizing the existing state of affairs could not have possibly affected communities.

In fact, the government acknowledged that in Armenia there are entities that have not paid taxes, and the government knew about it and, in fact, encouraged it. The Armenian Apostolic Church is, indeed, in a privileged position in Armenia – its financial records are closed to the public, no one knows what property the Church has and how it manages it.

And ARF Dashnaktsutyun MP Artsvik Minasyan reminded those present at the parliament session on Tuesday that in Armenia there is not only the Armenian Apostolic Church, but also other religious organizations and that after the adoption of this law they may also turn to the government for property tax exemptions.

Only four MPs, including three representing the ARF, voted against the draft law. And 74 MPs, despite some indignant speeches, still pressed the “yes” button.

The list of property-exempt Church property presented by the government includes 450 units of real estate, including 20 land-plots, four villas, 35 apartments, 11 soccer fields, two man-made lakes with canteens, cafes, rest houses, cinemas, shops, mills and pastures.

Vardan Bostanjyan, an MP representing the pro-establishment Prosperous Armenia Party (PAP), commented tartly: “Aren’t there some saunas?” Another member of the PAP parliamentary faction, Naira Zohrabyan, inquired how soccer fields could possibly contribute to the spiritual activities of the Church.

Not long ago under public pressure the government had to abandon plans to grant to the AAC the open-air hall of the Moscow Movie House in central Yerevan for the construction of a church. Complaints and protests then were upheld by representatives of the country’s intelligentsia which eventually forced the government to reverse the decision.

Criticism in the Armenian society has also been triggered by the Church’s intention to build a residence for the Catholicos in the center of Yerevan right near an old chapel. The Church succeeded in getting the permission and the residence is currently under construction. At the same time, the Church hears criticism for not doing enough to get funds for the conservation of churches that are historical monuments.

Source: