ArmInfo.The "Coalition to Stop Violence against Women" and "Domestic Violence Support Center " have urged the Armenian authorities to revert back to the previous taxation system for legal services.
As noted in the statement received by ArmInfo, it was also demanded that favorable conditions be created for the work of individual lawyers and law firms providing free and voluntary legal assistance. Human rights NGOs have warned that the new tax regulations could seriously threaten access to justice for the most vulnerable groups of the population and exacerbate social injustice. The statement mentions that, according to calculations by the Chamber of Advocates, tax liabilities for organizations providing legal services, as well as for individual entrepreneurs, have increased by 6-8 times. Instead of the previously applied 5% turnover tax rate, a 20% VAT is now applied, and the profit tax rates vary from 18 to 23%. "This significantly complicates the protection of violated rights of citizens, especially vulnerable groups," the statement says.
It is further noted that human rights activities are closely linked to citizens rights to a fair trial, access to justice, and effective judicial protection. "Comparing high-turnover law firms to human rights organizations is not consistent with human rights principles," the statement emphasizes. Additionally, it is also noted that human rights organizations with limited budgets already face increased state fees and spend significant resources to provide necessary services in both Yerevan and the regions of Armenia. "We believe that it is unfair to equate the legal services provided by human rights organizations with accounting or auditing services and to consider them as entrepreneurial activities. The Tax Code of Armenia should include exceptions for such cases. If this tax change is implemented, the cost of legal services will rise significantly, leading to a heavy burden on public defenders' offices and human rights organizations. This could jeopardize the right to access justice for the most vulnerable groups in society and worsen existing social problems," the statement reads.
