Parañaque City postpones NAIA showdown

The Parañaque City government averted for now a potential showdown with Pasay City, announcing a two-month grace period for the disputed Ninoy Aquino International Airport (NAIA) to come up with the P650 million in taxes it allegedly owes.

Parañaque Mayor Joey Marquez reportedly said that he is giving NAIA until Feb. 8 instead of before Christmas this year to settle the arrears. The mayor could no be personally reached at press time.

Parañaque and Pasay, both claiming jurisdiction over the airport, have assessed the country’s main international airport for land taxes unpaid by NAIA for years.

As a result, Marquez announced that he ordered the seizure and auction of the NAIA particularly its runway and Terminal II. Pasay City, on the other hand, said it has more right to the properties of NAIA citing the earlier tax levy it issued for P750 million in unpaid taxes.

Parañaque plans to bid off NAIA, which Marquez said they will take over themselves should there be no buyer, after it had allegedly passed an ordinance approving the auction and having the first of the required three notices of auction published.

The two cities earlier had an agreement to equally share the taxes due from the airport, with Pasay receiving the full payment and giving Parañaque its share. The deal apparently never pushed through as NAIA reportedly never paid in full.

According to Pasay City administrator Ernestina Carbajal, Parañaque could not validly make the claim without jeopardizing their own claim to the land. Carbajal had refused to comment when asked if Parañaque’s move to unilaterally claim the airport under a tax levy is a violation of their earlier agreement of "50-50" tax sharing.

Carbajal said NAIA had virtually admitted Pasay’s jurisdiction over it by paying some of its taxes in 1998 to Pasay.

Carbajal though expressed doubt what Parañaque could do anything should the national government step in and condone NAIA’s tax obligations. NAIA challenged Pasay’s tax claim in the Court of Appeals. – Jose Aravilla