'Render unto Caesar what is Caesar's': Pacific leaders respond to Luxon's church tax call

The government has declared taxing churches could be up for discussion this term.

And Auckland Mayor Wayne Brown has also chimed in from the pews, so to speak, saying he'd like see churches pay rates on their buildings.

Under the current New Zealand law, churches are exempt from paying tax, but when asked his view on the matter Prime Minister Christopher told Newshub that he's "actually quite open” to removing that exemption for religious organisations.

"I've actually been thinking through the broader dimension of our charitable taxation regimes," he told Newshub.

"We will certainly be looking at things like that this term, yep," he said.

But Luxon also added right now it's "not a focus".

And in a strong-worded letter to the finance minister, Mayor Brown has outlined a number of entities, which included airports, port land, wharves, jetties and churches, that he’d like to start paying rates.

However he also acknowledged that the government would need to change the law to allow Auckland Council to do this.

But these recent announcements have not been met warmly by Pacific leaders.

Watch the full interview with Reverend Atu Lagi below:

'Render unto Caesar, what is Caesar's'

Assistant National Superintendent for the Wesleyan Methodist Church of Aotearoa-New Zealand and Regional Secretary World Methodist Evangelism Rev. Atu Lagi joined 531pi’s Pacific Mornings to discuss what impact it would have on Pacific churches if the change was introduced.

He says making churches pay taxes or rates could have some unintended consequences on the rest of society.

“The impact would be huge,” he says.

“Everything we do in community churches, in our Pacific churches, is all done from the heart. It's all about giving, it's all about helping, it's all about caring, it's all about loving one another.

“And when you look at what Pacific churches are actually doing, it really is contributing to the work that the government is doing. As we help support the government in terms of caring, in terms of leadership, in terms of welfare, in terms of the social arm.”

National party leader Judith Collins prays at St Thomas Church in Tāmaki before casting her early vote for the election. Photo: RNZ / Katie Scotcher

Lagi adds that the Covid pandemic was a prime example of how the church plays a key role in helping the government roll out its policies.

“When the Covid hit this country, the government realised that the go-to places were the churches. So we, the churches, gathered, rallied and mobilised and worked in partnership with the government of the day.

“And the amount of work and hours that we gave was all voluntary. And so and in every aspect of trying to get this nation back to its feet - the church played a vital role.”

Taliaoa John Loau. Photo/BluTV Media

However Pacific business entreprenuer and member of National's Pacific Blues Taliaoa John Loau says maybe it is time for a rethink given the millions some churches rake in.

"We have churches that own private businesses that are reeling in the tens of millions of dollars. Does that actually fit within the same definition of what the Charities Act is? So look, I think it's timely."

The Pacific Blues is a collective of Pacific supporters of the National Party and Loau says his group will feedback to MPs how this will impact Pacific churches.

“All tax settings should be reviewed … and we look forward to having a robust conversation within our group and the community so we can advise the PM and the caucus as well.”

Listen to Lemauga Lydia Sosene's full interview on Pacific Mornings below:

Māngere electorate Labour MP Lemauga Lydia Sosene is another not in favour of the idea, but she says it’s important such changes go through a thorough consultation.

"You know, we see in the Bible, [it says] 'render unto Caesar what is Caesar's, render unto God what is God's'.

"It is a very personal choice for people to belong to a faith community. I would encourage our faith communities, talk to your MPs, talk to your local councils on this matter. Raise your views if you think, as a person in the faith community, this is the wrong choice to make. So challenge it."