Government sidesteps unified position on proposal to tax church compensation

The Czech government on Monday failed to take a position on a proposal to tax the state’s financial compensation to the Church for property seized by the former Communist regime. Under a property settlement reached four years ago, the state is paying out 59 billion crowns adjusted for inflation over 30 years.

Bohuslav Sobotka, photo: Khalil Baalbaki

Differences over a plan to tax compensation being paid to the Church and other religious groups for past wrongs could easily turn into a major wedge issue in government so it is no surprise the cabinet of Prime Minister Bohuslav Sobotka decided to tread cautiously Monday, opting to take no stance which could lead to cracks in the coalition. At stake is a proposal to tax 59 billion crowns to be paid out over 30 years in compensation for property which was seized by the Communists and never returned.

Significantly, the bill tabled by a Communist lower house MP, did receive backing from one member of the cabinet, Finance Minister and ANO party leader Andrej Babiš.

Marián Jurečka, the deputy leader of fellow partners in government, the Christian Democrats, made clear he was less than happy with the minister’s position, suggesting it was an unprecedented reversal.

Andrej Babiš, photo: Filip Jandourek

“I have to say that I am now surprised that the Deputy Prime Minister and Finance Minister Andrej Babiš has changed his mind and is ready to support the Communists’ proposal. It strikes me as strange that from one day to the next the Communists took property away from the church and different orders and that today they are coming forward to push for additional taxes.”

Ministers for the Social Democrats abstained from voting in order to uphold the existing coalition agreement which steers well clear of reopening up the restitution debate. Prime Minister and Social Democrats Leader Bohuslav Sobotka:

“We agreed to abstain from voting on the issue. Without an agreement with the Church we agreed we not make changes in the church property settlement. This was part of the coalition agreement, something which the Christian Democrats insisted on. The coalition agreement has been the foundation for working together the past two years.”

Dominik Duka, photo: Filip Jandourek

Both ANO and the Social Democrats have in the past tried unsuccessfully to renegotiate with the Church aspects of the deal agreed under the previous government. It was a major plank of the Social Democrat election campaign in 2013.

While Mr Babiš has expressed the view that the compensation was disproportionately high, others clearly disagree. Prague Archbishop Dominik Duka, for one, has threatened if new taxation passes in the lower house, the Church will take the matter to the Constitutional Court.