On May 21, hundreds of Armenian lawyers went on strike to protest the government's plans to significantly increase the taxes they are required to pay.

In a significant shift from the existing tax regime, Armenian law firms and individual attorneys may face substantial tax increases if a government bill submitted to the parliament earlier this month is approved. Currently, these entities pay a single "simplified tax" equivalent to just 5 percent of their annual turnover, aligning with the tax structure for most small businesses in Armenia. However, under the proposed reforms, this simplified tax would be replaced by value-added and profit taxes, set at 20 percent and 18 percent, respectively.

The government describes the existing system as providing privileged treatment to the legal profession and aims to bring lawyers' tax obligations more in line with those of the broader taxpayer base.

Simon Babayan, the Chairman of the Armenian Chamber of Advocates that initiated the strike, expressed strong opposition to the proposed tax reforms, labeling them as "concerning and unacceptable."

Simon Babayan and other protesting lawyers highlighted concerns that the proposed tax hike would significantly increase the cost of legal services, potentially rendering them unaffordable for many Armenians. They also argued that the tax reforms would hinder their ability to provide pro bono assistance to low-income citizens, as such services would now be subject to taxation. Despite the bill's approval by the parliament's standing committee on economic issues, the timeline for its debate in the National Assembly remains uncertain.