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Call for More Tax Income Support for Finnish Lutheran Church

Archbishop Jukka Parma of the Evangelical Lutheran Church of Finland has called on government to compensate the church for tax income lost as a result of the ongoing economic decline.

Porvoon vanha tuomiokirkko
Image: Pentti Palmu / YLE

“The church should also be compensated, because municipalities are receiving support,” said Paarma in an interview published in the online version of the newspaper Kaleva. The online daily reported that the Archbishop’s request had been forwarded to Finance Minister Jyrki Katainen and Prime Minister Matti Vanhanen.

Currently the church receives 1.75 percent of corporate tax income, compared to about three percent some ten years ago. State support for the church with tax revenue is based on its execution of social tasks, such as maintaining cemeteries.

The cost of maintaining cemeteries in Finland currently exceeds the church's income from taxation, and last year the church spent 100 million euros on funerals. If the church’s tax income declines as expected, it will receive 70 million euros from government.

“Funeral expenses do not fall, even in the face of a recession,” said the Archbishop.

The creeping fall-off in church membership is leaching away at church finances more than the general recession, since it depends on its membership to gather much-needed church taxes. Corporate taxes contributed by government accounts for one-tenth of church income.

Paarma says the church has no intention of cutting back on its basic services, such as community outreach, education, church services or pastoral care. On the other hand, the church may have to red line areas such as management, finance, cemeteries and real estate.

Sources: YLE