2% mechanism is a method of showing to state where to direct public funds, opinions

The mechanism for directing 2% of the income tax to a nongovernmental organization or a religious entity started to be wider used in Moldova. Representatives of the State Tax Service said that an increasing number of citizens choose to support such a noble cause. Representatives of civil society noted that the so-called 2% law is a form of democracy by which the citizens decide how the public funds should be spent, IPN reports.

The Social Mission “Diaconia” provides social services. The Mission’s head Igor Belei said the money directed by the citizens from the income tax through the 2% mechanism reaches vulnerable people from all the country’s districts.

“We have different forms of personal involvement, both during campaigns and permanently. There are people who are used to showing solidarity and the 2% mechanism is the next step towards our common-good approach. The needs we identify go beyond our intervention capacities. There is no community without any vulnerable older person or family. There is a contest between departments as to who will get these funds from the 2% mechanism as the needs are great everywhere,” Igor Belei stated in the program “Common Objective” on TVR Moldova channel.

The 2% mechanism enables private individuals who pay taxes to direct 2% of the income tax paid for the previous year to an NGO or religious entity.

“The private individual who does not have debts to the national public budget can direct 2% to a noncommercial or religious organization. The procedure is very simple. If the person has a digital signature, it is enough to insert the fiscal code and to choose the entity to which one wants to direct this money. An increasing number of taxpayers now direct these 2%,” said the representative of the State Tax Service Jana Grichuk.

Representatives of civil society said the 2% mechanism helps to strengthen the NGO sector.

“The Republic of Moldova has applied this mechanism since 2017. This is not a Moldovan invention. A part of the countries in Central and Eastern Europe have used this mechanism for tens of years. The goal of this mechanism is to support a public cause. In fact, the citizens tell the state where the public funds should go. These 2% are actually money from taxes, not from the person’s pocket. This money was already collected by the state and why shouldn’t we not tell the state what to do with a part of this money? In localities, the NGOs or religious organizations know what needs that community has. By this 2% mechanism we can become involved to support the worthy causes,” said the head of the Legal Resources Center Ilie Chirtoacă.

Owing to the 2% mechanism, over 40 million lei has been transferred to the noncommercial sector since the law took effect.

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