Karnataka temple tax row: All you need to know

The Karnataka Cabinet on Wednesday (February 21) passed the Hindu Religious Institutions and Charitable Endowment (Amendment) Bill, paving the way for collection of 10 per cent of the income from Hindu temples raking in revenues over ₹1 crore.

The Siddaramaiah government’s move has left the Opposition BJP fuming with the party, calling it “anti-Hindu” and accusing the Congress of introducing the bill to fill its “empty coffers” with temple revenues.

Here’s a look at the bill and why it has sparked a row in the southern state.

What was the earlier rule?

The Hindu Religious Institutions and Charitable Endowments Department manages over 35,000 temples. Of these, 205 which rake in a revenue of ₹25 lakh annually are categorised as Group A, while 193 with an annual income between ₹5 lakh and ₹25 lakh are placed in Group B. Similarly, around 34,000 temples that have income below ₹5 lakh are categorised under Group C.

So far, Group A temples, were contributing 10 per cent of the revenue generated from temple collection boxes to the Dharmika Parishad (committee to improve temple management), while Group B temples gave five per cent to the same fund. No contribution was made by Group C.

What changes under the amended law?

Under the amended law, temples with an annual income above ₹1 crore will be required to contribute 10 per cent of their revenue to a ‘Common Pool Fund’ (CPF).

The new rules will also mandate temples earning between ₹10 lakh and ₹1 crore to contribute 5 per cent of their income to the CPF.

Temples earning below ₹10 lakh annually do not have to make any contributions.

The CPF will be regulated by the Hindu Religious Institutions and Charitable Endowments Department and be used for religious activities in the state.

State Transport and Hindu Religious Endowments Minister Ramalinga Reddy, who introduced the bill in the assembly, said that the funds will be used not just to maintain temples, but also to provide insurance cover, death relief fund for temple priests and sponsor scholarship of children from families of over 40,000 priests.

Why is BJP upset?

Dubbing the bill as anti-Hindu, the BJP said the state government has introduced it for its own benefit. Taking to X, BJP’s Karnataka unit president Vijayendra Yediyurappa asked why the government wasn’t imposing a similar tax on other religious structures.

“Corrupt, inept #LootSarkaar with its penchant for anti Hindu ideology in the guise of secularism, has cast its evil eyes on the Temple revenues. Through the Hindu Religious Endowments amendment act, it is trying to siphon off donations as well as offerings from Hindu temples and religious institutions in order to fill its empty coffers,” he posted.

He said the temple fund should only be used for renovation of temples and to “facilitate works beneficial to devotees, rather than diverting it for other purposes, which would be an injustice and betrayal of people's religious beliefs.”

“Instead of grabbing the devotees’ money, government can install "Donation Boxes" so that the concerned citizens can help this penniless govt boost its revenue as a Gesture of Goodwill !” he added.

BJP leader Rajeev Chandrasekhar also accused the Siddaramaiah government of trying to “loot” temples through the bill.

“This is the government which in a few months has shown crore and crore of rupees have been siphoned off and given to their contractors. And now the case they’re making to fund their corrupt politics is that the Hindu devotees in Karnataka must give money to Karnataka Congress ATM machine…Hindu devotees’ money is being looted by the Karnataka government,” he said.

What has Congress govt said in response?

The state government on Thursday (February 22) sought to clear the air by stating that the amendments have been introduced as a necessity to enhance the CPF, including a person skilled in Vishwa Hindu Temple architecture and sculpture in the committee of management of notified institutions and to form district and state-level committees to improve temples and infrastructure for the safety of pilgrims.

Defending the government’s move, minister Reddy said that the provision is not new and has existed since 2003.

Reddy said contrary to the BJP’s accusation, the new rules in fact spares temples whose income is up to ₹10 lakh from contributing to the Dharmika Parishad.

Where will the funds be used?

The minister said the funds collected by the Dharmika Parishad can be used for the benefit of 40,000-50,000 priests in the state.

“…we can provide them insurance cover. We want their families to get at least ₹5 lakh if something happens to them. To pay the premium we need ₹7 crore o ₹8 crore,” he said.

He said the government also needs ₹5-6 crore annually to provide scholarship to the children of temple priests.

Government sources said the purpose behind the bill is to provide facilities and safety to pilgrims within the jurisdiction of Group 'A' temples.

A district level and state high-level committee will be constituted to scrutinise, review and submit the proposals regarding the construction and maintenance of buildings, roads and tunnels, electricity supply and maintenance, water supply and sanitation, construction of recreation centres and libraries to provide necessary facilities to pilgrims and to provide safety to pilgrims within the jurisdiction of Group "A" Temples, they added.

How has Siddaramaiah responded to the controversy?

Accusing the BJP of spreading lies, Chief Minister Siddaramaiah said the saffron party was twisting the entire issue to polarise people.

In a post on X, the chief minister said the mandate for the creation of the common fund pool was made way back in 1997 and that the latest amendment has been made “solely to enhance the amount of the common pool.”

He said the fund is entirely meant for religious purposes connected with the Hindu religion.

“The Common Pool Fund has been utilised only for the religious purposes of Hindu institutions since the Act came into force in 2003, and it will continue to be used for the same purposes in the future. It has not been utilised for any other purposes or for the benefit of followers of other religions. These provisions underscore a commitment to using temple funds for the welfare and upliftment of the Hindu community, directly contradicting claims of misallocation of funds for non-Hindu purposes or the imposition of unfair taxes,” he said.

The allegations regarding the Karnataka government's amendments to the Hindu Religious Institutions and Charitable Endowment Bill appear to be misrepresented for political gain. There has always been a mandate to create a common pool since the enactment of the Act in 1997. Before… pic.twitter.com/HQt0JxjU5j

— Siddaramaiah (@siddaramaiah) February 22, 2024

Siddaramaiah also shared a list of proposed activities where the fund money will be spent on.