On June 3, Cardinal Matteo Zuppi, President of the Italian Bishops' Conference, criticized an amendment to Article 47 of Law 22/85, which governs Italy's financial support for religions.
Cardinal Zuppi expressed his "disappointment at the government's unilateral decision to alter the purposes and allocation methods of the ‘eight per thousand’ tax revenue.
This change undermines the original agreement between the Church and the government . . .resulting in inequalities that harm both the Catholic Church and other religious bodies with agreements with the state.”
The government responded that Article 47 was altered by the previous left-wing government of Giuseppe Conte and that the recent amendment is minor.
What exactly is the situation? To understand this "eight per thousand" system, we must go back to 1870.
Genesis of the "Eight per Thousand"
Italy unified in 1861 following military invasions. The Papal States resisted due to a pact between the Vatican and France. In 1870, Prussia attacked France and forced French soldiers to return home, allowing Italy to conquer the Papal States.
“The Pope excommunicated the King of Italy along with any Italians who chose to run for office or participate in elections.. . fewer than 20% of citizens took part in the voting process.”
To resolve the situation, Mussolini offered financial compensation. “Through the Concordat of 1929, the Vatican acknowledged Italy's sovereignty over the former Papal States and revoked the excommunications. Italy agreed to pay all Catholic parish priests a monthly salary and exempted all priests from military service.”
After the fall of fascism, Italy incorporated the 1929 Concordat into its Constitution. In 1984, the Vatican and Bettino Craxi's socialist-led government agreed to a new concordat. The Vatican secured the Concordat's right to remain a treaty governed by international law, rather than Italian law.
Furthermore, Italy and the Vatican agreed to abolish the stipend system for parish priests and replaced it with a religious tax.
In Italy, the religious tax is not optional, unlike in Germany. The 1929 Concordat established that 0.8% of all Italian taxes is allocated to support religion. It is not a new tax, and taxpayers cannot opt out of it, but they can choose where their 0.8 percent will go: to the Catholic Church, or to one of the recognized religions, or to the State for cultural and humanitarian initiatives.
A Clause Favoring the Church
A clause allows the Church to receive an additional contribution from the 0.8%. Each year, a significant portion of taxpayers express no choice as to its destination. Their 0.8% is then distributed in proportion to the preferences expressed.
Thus, in 2020, 41% of taxpayers expressed a choice for the allocation of their 0.8%, while 59% did not.
Of those who indicated a preference, 70.4% chose the Catholic Church, which therefore received 70.4% of the amount derived from the 0.8% of taxes paid by 59% of Italian citizens who forgot or chose not to express a preference. With this clause, the Church now receives more than under the system in effect before 1984.
If the Catholic Church received 70.4% of the 0.8% of taxes from only those who explicitly chose it, it would receive its 0.8% on 28.7% of all taxes collected in Italy.
In contrast, under the current system, it receives 70.4% of the 0.8% of all taxes paid in Italy.
The difference between 28.7% and 70.4% represents several hundred million euros.
The Current Controversy
The previous Conte government allowed taxpayers who designated the state to choose one or more of five designated areas on their tax return to direct the 0.8% revenue. These areas cover: the fight against world hunger, natural disaster response, refugee assistance, cultural heritage preservation, and school infrastructure rehabilitation.
This initiative was effective: the state's percentage increased, while that of the Church decreased. Factors contributing to the change include the decline in the number of active Catholics and campaigns by conservative groups calling for the withdrawal of support for the Church in protest against its pro-immigration stance.
However, the state's percentage remains significantly lower than that of the Church. The new government has increased the number of options to seven, adding assistance to unaccompanied foreign minors and extraordinary measures for the recovery from drug addiction and other addictions, aimed at the treatment, rehabilitation, and reintegration of people suffering from such addictions.
Catholic bishops fear that including initiatives to combat drug addiction, which is widely supported, could increase the number of people who would select the state, which would be detrimental to the Church.
The government has clarified that, should this occur, the Catholic Church currently manages a significant portion of these drug recovery programs, which would indirectly result in it receiving additional funds.
The controversy also stems from concern over a proposal suggesting that religions will only receive the 0.8% of taxes from taxpayer who would explicitly designate them. This would have disastrous consequences for both the Catholic Church and religious minorities.
To avoid this, the Church has reminded the government that the 1984 Concordat cannot be unilaterally modified and is an international treaty.
It is unlikely that Giorgia Meloni's government will reduce the 0.8% allocated to religions to the portion of the taxes of those who indicate a choice only.
But the Church has already decided to warn the state that this would violate international law.