Moldova's 2% tax boosts civil society with over 12 million lei
Moldova's civil society sector received a boost thanks to over 12 million lei (approximately $650,000) redirected from individual income taxes in 2023.
This marks the seventh year of the "2% mechanism," or "Law 2%," where taxpayers can voluntarily allocate 2% of their income tax to a non-profit organisation or religious entity.
Growing Support:
The number of participants continues to rise, showcasing increasing public engagement. 2023 saw nearly 39,000 taxpayers contributing, a 6% increase from 2022. Notably, over 70% of redirected funds flowed to organisations in the capital Chișinău, with the remaining 30% benefiting entities across the country.
Top Recipient:
The Public Association of Veterans and Pensioners of the Ministry of Internal Affairs received the highest individual sum, exceeding 900,000 lei (approximately $50,000), representing roughly 7.5% of the total. This marks their seventh consecutive year as the top beneficiary.
Mechanism Explained:
Launched in 2017, the 2% mechanism empowers individual taxpayers, free from outstanding tax debts and fulfilling their yearly obligations, to directly support causes they care about. This voluntary program strengthens civil society and offers valuable financial resources for NGOs and religious institutions.
Future Outlook:
While participation steadily increases, challenges remain. Geographic disparities highlight the need for greater awareness in rural areas. Additionally, diversifying the recipient landscape beyond established organisations could broaden the impact of the 2% mechanism.
Translation by Iurie Tataru
