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Karnataka government intends to reintroduce the temple tax bill; what was the proposal from Congress and why was it rejected?

The measure to impose taxes on income received from the state’s temples was recently dropped by the Siddaramaiah administration in Karnataka. The state’s opposition BJP, which calls the Congress administration “anti-Hindu,” has responded angrily to the measure.

The Karnataka Hindu Religious Institutions and Charitable Endowments (Amendment) Bill, 2024 was blocked in the Legislative Council on Friday by the opposition BJP-JDS coalition. As a result, the Congress administration is considering submitting the bill in the state house a second time.

Party officials were quoted in a story published in The Indian Express, stating that the Bill is being studied for tabling at a later time when the Congress has a majority in the Council.

With 35 members, the BJP-led NDA controls the majority of the 76 members of the Karnataka Legislative Council; the Congress has just 30 MLCs. The temple tax measure was rejected in large part due to the presence of the BJP.

The claims on the Bill’s changes, according to Karnataka Chief Minister Siddaramaiah, “seem to be misrepresented,” “aiming only at misleading the public,” and “polarizing people along communal lines for political leverage.”

WHAT IS SAID IN THE BILL?
The Karnataka government has suggested that temples that generate more than Rs 1 crore in income should pay 10% tax, while those that earn between Rs 10 lakh and Rs 1 crore should pay 5% tax.

As per the current legislation, temples are classified into three groups according to the amount of money they bring in: Temples with annual revenue of more than Rs 25 lakh are categorized as Grade A, those with revenue between Rs 5 lakh and Rs 25 lakh as Grade B, and temples with revenue under Rs 5 lakh as Grade C.

According to a study by The Times of India, Karnataka has over 34,000 Grade C temples in addition to 250 Grade B and 67 Grade A temples.

The study also said that 10% of Grade A profits and 5% of Grade B revenues may be given by the state government to Grade C temples in order to support their upkeep.

According to the new law, shrines earning between Rs 10 lakh and Rs 1 crore must pay 5% of their yearly income to Dharmik Parishad, while temples classified as “Muzrai” must divide their earnings among Grade C temples.

The maintenance of temples of the “C” category (state-controlled) and the welfare of archakas (priests) are the intended uses of the common pool money, which is overseen by “Rajya Dharmika Parishath.”

DISPUTS ABOUT THE BILL
According to BJP state president Vijayendra Yediyurappa, the administration enacted the measure in order to use the tax money earned from the temple to restock its coffers. Millions of followers wonder why only Hindu temples get funding, disregarding those of other faiths. He said, as reported by Moneycontrol.com, “Instead of taking the devotees’ money, the government can install “donate boxes” so that the concerned citizens can help this broke government boost its revenue as a gesture of goodwill.”

Union Minister Rajeev Chandrasekhar chastised the Karnataka Congress administration as well, calling their decision to approve the Bill a “new low” for the party in power in the state. Chandrasekhar was cited by PTI as stating, “Every time you think Rahul’s Congress cannot fall any lower, along comes an example of them falling even lower.”

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