HRPP MPs Support Removal of Church Minister’s Tax

APIA, SAMOA – 16 FEBRUARY 2022: Except for one HRPP Member of Parliament, the majority of the Opposition MPs supported the Government amendment to abolish the church minister’s tax before parliament was adjourned last night.

Removing the controversial tax was in the FAST Party’s election platform given the lack of consultancy before the law was passed on emergency status in 2017 and enforced in 2018. This resulted in church ministers appearing and defending themselves in court for refusing to pay taxes.

The shift in the HRPP MPs narrative and current support to abolish the law, is a far cry from its tone when the law was rushed through against a few opposition voices in parliament in 2017. It also reflects the sensitivity of the issue and its political implications.

HRPP Faleata No 4 MP, Ale Vena Ale was blunt saying the issue was the cause of the HRPPs loss in the general election and he asked that the Act be removed.

Sulamanaia Tauiilili of Vaimauga No 1 spoke at length about the need for Parliaments’ integrity be upheld and for the people “to submit” to the laws that parliament passes. In the end, he supported removing the taxation of church ministers.

Former Cabinet Minister Tu’u’u Anasi’i Leota (who was not in the Parliament where the taxation was passed) suggested a referendum to let the people vote and decide the issue.

The Minister for Agriculture & Fisheries and FAST Party Chairman, Laaulialemalietoa Leuatea Polataivao reminded the MP that that action should have been taken before the Act was passed. “But there was little consultation and there were denominations who were dragged in despite being against it.”

Some of the HRPP members in parliament.

In the 4 years since its enforcement in 2018, only $476,000 tala was collected in church ministers’ taxes.

“This is a very minute percentage of our economy and revenue,” said HRPP MP Lealaiasa Sepulona Moananu of Anoamaa No.1. He pointed out it was not worth the effort for the Ministry of Revenue to collect it. He also supported removing the taxation.

Faimalotoa Kika Ah Kau, MP for Gagaifomauga No.1 and other MPs recommended to refund the church ministers taxes paid in the 5 years the Act was in force.

Reasons for abolishment
The controversial Church Ministers Tax Act 2021 was passed by parliament under emergency status and lacked enough consultation hence the objection by the church ministers.

The Minister of Revenue, Tuala Iosefo Ponifasio raised the following reasons why the Act should be abolished:

• Only the ministers of village congregations – Faifeau Tausi Nu’u are exempted and church ministers serving at various church offices and schools do pay taxes;
• Inconsistencies in the Act as highlighted by the Court in the criminal charges against the CCCS ministers;
• The deduction of taxes from the church ministers personal bank accounts without consent;
• The difficulty in continuing to enforce the law which resulted in only $476,000 tala collected in 4 years since its enforcement in 2018;
• Substantial expenses to an overseas consultant who recommended taxation of church ministers but the Ministry could not enforce the law which raised the question of why it was proposed in the first place,

Consultation with Church Leaders
Prior to the move to abolish the tax, the Ministry of Revenue met with the leaders of all church denominations in November 2021 to discuss the issue.
“They supported the Government’s proposal to abolish the Act,” said Tuala.

The Minister for Revenue Tuala Tevaga Iosefo Ponifasio acknowledged the MPs views and recommendations which the Parliamentary Committee will be scrutinising and report back for the final reading of the amendments to the Income Tax Act 2021 where the taxation is expected to be removed.