Bishop urges protection of historic Church rights amid Jerusalem tax debate

A DISPUTE over taxes has erupted into a fresh standoff between Churches and Jerusalem city authorities – with Christian leaders warning their charitable work could be at risk.

The controversy – which centres on Israel’s Arnona property tax – prompted Palestinian Authority President Mahmoud Abbas to appeal to Pope Leo XIV and other international leaders over fears centuries-old exemptions could be at risk.

Speaking to Catholic charity Aid to the Church in Need (ACN), Bishop William Shomali, Auxiliary Bishop of the Latin Patriarchate of Jerusalem, said President Abbas’s intervention was an important reminder of the Church’s historic rights.

Bishop Shomali said: “It helps to bring the subject back to the forefront of international attention, even if it does not, on its own, possess the necessary force to impose an immediate solution.”

According to the bishop, two factors underlie Mr Abbas’ appeal. 

First, the Palestinian Authority regards East Jerusalem as occupied territory, disputing Israel’s right to levy taxes on Church properties there. 

Second, Mr Abbas wishes to protect historic privileges granted to Christian institutions under agreements dating back to the Ottoman era.

Bishop Shomali noted the Mytilene Agreements of 1901, which helped establish certain tax exemptions for Churches in the Holy Land.

He said: “They were respected under the British Mandate and even by Israel in the years following independence, in 1948, and have never been officially repealed.”

Bishop Shomali stressed the difference between the Church’s commercial activities and its religious, educational and charitable work.

 The Church fears that its worship and outreach to vulnerable members of society could be impacted by the dispute.

He said: “As for schools, hospitals, social centres and purely religious institutions, the Churches hope that they will continue to benefit from traditional exemptions because of their educational, charitable and spiritual mission.”

Noting that the dispute had already stretched over three decades – in 2018 Church leaders closed the doors of the Holy Sepulchre in protest – he added: “If the municipality decided to retroactively apply the Arnona tax to for-profit activities, the amounts claimed could reach a few million euros.”

The bishop suggested a negotiated agreement could avoid retrospective claims against commercial activities, limiting future tax liability.

He said: “We hope that a compromise remains possible. This could consist of having clearly for-profit activities contribute to the municipal charges from which they benefit, while preserving the exemptions granted to places of worship, parish halls, cemeteries, and religious, educational and charitable institutions.”

Bishop Shomali underlined that the central issue was drawing a clear line between the Churches’ business operations and its wider mission.

He said: “The main challenge is to define precisely what constitutes a commercial activity and what belongs to the pastoral, social or religious mission of the Churches.

“It is on this distinction that a balanced and acceptable solution for all parties could rest.”

The dispute comes at a difficult time for Christian communities in the Holy Land, who are grappling with the consequences of regional conflict, economic hardship and declining employment opportunities.

Bishop Shomali concluded by expressing thanks to ACN and the charity’s supporters.

He said: “We are deeply grateful to ACN and to its generous donors… 

“Thanks to their help, we can also support the most vulnerable Christian families, who are currently going through a particularly difficult period due to the war, the economic crisis and the lack of jobs…

“Their spiritual and material closeness is a sign of hope for the Christians of the Holy Land and helps them to remain in the land where Christianity was born.”