ISLAMABAD, Jan 26 The Chaklala Cantonment Board (CCB) is demanding over Rs3.26 billion in property tax from Civil Aviation Authority (CAA) for the Benazir Bhutto International Airport but the latter claims the facility does not belong to it, Dawn learnt on Tuesday.

People in the know of the interesting tug of war between the two institutions say the CCB has issued 'house tax' notice to the CAA, claiming that the thousands of acres occupied by the airport and allied facilities fall within its boundaries and so the CAA is liable to tax.

However, the CAA returned the notice, saying it was not liable to pay any tax as the Pakistan Air Force owns the land.

“Islamabad (Chaklala) airport is a joint user airfield, the air traffic control of which lies with Pakistan Air Force since Feb 14, 1981,” the CAA said.

What is more, the CAA said, “the government of Pakistan has equity in the (airport) buildings transferred to CAA so the land and buildings of the aviation authority are exempted from tax under section 90 of Cantonment Act 1924.”

But the CCB cited the Cantonment Act 1924 to assert that the land/buildings situated within the Cantonment Area and owned by a corporation/authority are liable to taxation.

A source referring to the CCB's letter to CAA said “The CCB in its letter said that BBIA (Islamabad Airport) and allied offices owned by CAA have not so far been assessed for the purposes of property tax.”

Interestingly, the CCB has also asked the CAA to provide the relevant information regarding the total area of land, covered area of buildings/offices, covered area of sheds and monthly rent being charged by the management in respect of rented-out units.

A senior official of the CAA when approached said on condition of anonymity “The entrance of the airport is under the limits of Punjab Government while the runway lies in the jurisdiction of Islamabad Capital Territory which is also an issue for the authority.”

“The CCB's stance is invalid and unjustified,” he said, quoting the Cantonment Laws of Pakistan. Its Section 99 says “Building and land shall be exempted from tax on property as the building or lands used or acquired for the public service or for any public purpose, which are property of [government] or in the occupation of central or provincial government.”

The CAA, he said, would challenge the said house tax in court of law.

CCB's executive officer Khurshid Ali was not available for comments.