Returned Church Assets Should be Taxed, Says Czech Communist Party

July 16, 2018 Taxation in Czech Republic

El millor romànic de Praga / Best romanesque in PraguePRAGUE – The Czech Communist Party wants to tax churches for the return of assets originally seized by Communist after World War 2.

A dispute is rising between churches in the Czech Republic and the national Communist Party, as the Party calls for taxes to be applied to the compensation package to be paid to churches around the country.

In 2012 the government struck a deal with churches in the Czech Republic to return assets previously confiscated by the Communist state after World War 2.

As part of the package, any assets which could not be returned would be repaid in as capital over the course of 30 years.

The extent of the assets involved in the agreement is vast, with a value of CZK 75 billion, and include works of art and more than 40 000 hectares, which itself contains vineyards and forests.
Further, along with the assets, the churches are expecting an additional CZK 59 billion in payments.

However, the Communist Party is now contesting that the payments and asset handover is excessive, and that from 2019 the payments should face a tax of 19 percent.

While the proposal is controversial, some experts believe that it is likely to pass, as the newly elected minority government needed the small backing of the Communist Party in order to secure a confidence vote last week.