Post by Anna Melikyan

Are there any countries where pro bono legal aid is taxed? Armenian government suggests that if a lawyer wants to provide legal aid pro bono, they should pay VAT for it calculated based on the market price for legal services. Exception is made to 5% of caseload but only to those persons who could be beneficiaries of state-guaranteed legal aid. Applications to the ECHR are not covered by this exception. As of January 2025, Armenia increased taxes to those lawyers who were paying 5% to at least 35 % (7-fold increase in one go), and the burden was placed on the citizens. Many lawyers quit their pro bono cases not to be taxed for them leaving their beneficiaries on their own. Hence, people think twice before seeking redress for a violated right as they could not afford the costs, but may also not be eligible for state-guaranteed legal aid. State-guaranteed legal aid lawyers are EXTREMELY overwhelmed, hence existing legal safeguards often remain on the paper. In criminal cases, a state-guaranteed legal aid lawyer on average has an hour per case per month (if you do not count time spent on the road between courts, investigation committee, etc.) This could not qualify as effective legal aid. According to official statistics, while tax returns tripled following these amendments (government extremely happy), many self-employed lawyers suspended/stopped their prifessional activitues. Moreover, the funding for state guaranteed was increased only marginally, and yet does not cover the needs. Our study will be published soon.