(ZENIT News / Colonia, 07.11.2024).- The Catholic Church in Germany experienced a significant decrease in church tax revenue in 2023, according to the latest statistics from the German Bishops’ Conference (DBK). The total income for the country’s 27 dioceses amounted to €6.51 billion, reflecting a drop of approximately €330 million, or 5%, compared to 2022.
Historical Comparison
In 2022, the Catholic Church reached a record high with revenues exceeding €6.84 billion. The year 2021 also saw substantial collections of €6.73 billion. The decline in 2023 signals a worrying trend for the Church, which heavily relies on these funds for its pastoral, educational, and social activities.
The trend is not unique to the Catholic Church. The Protestant regional churches in Germany, grouped under the Evangelical Church in Germany (EKD), also reported a decline in tax revenues. In 2023, they collected approximately €5.9 billion, down 5.3% from the €6.24 billion recorded in 2022, another record year for them.
Contributing Factors
Church representatives have consistently pointed out that the decrease in church tax revenue is part of a long-term trend. Several factors contribute to this decline:
- “Membership” Decline: A reduction in membership due to people formally leaving the church, alongside deaths and the retirement of the baby boomer generation.
- Economic Fluctuations: Church tax revenue is directly tied to state income tax, causing fluctuations based on the general economic situation and workforce participation.
- Faith and Church Dynamics: Many devout Catholics are disillusioned with the progressive direction of the Church in Germany, leading to lower engagement.
When adjusting for inflation, the financial situation for German dioceses appears even more dire. Since 2019, there has been a noticeable downward trend. Adjusted for inflation, revenues were approximately €5.19 billion in 2019, dropping to €4.7 billion in 2022, and further down to €4.22 billion in 2023.
Church Tax System in Germany
In Germany, the collection of church taxes is constitutionally guaranteed. This tax is crucial for funding church activities in areas such as pastoral care, education, and social services. The church tax is an additional 8% or 9% surcharge on income tax, depending on the region. The German state handles the collection of this tax and retains around 3% of the total revenue for its services.
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