Rawalpindi Gymkhana Club has been declared defaulter of Rs 22.1 million by the Rawalpindi Excise and Taxation (E&T) Department on Thursday.
According to sources, the E&T department held numerous meetings with the gymkhana club administration which remained inconclusive.
“The department also sent notices to the club administration in this connection, but no one turned up. Eventually the E&T department issued a notice to the administration to pay the tax due on the club,” the source added.
The source further said that the tax was imposed on the club under Punjab Finance Act Rules 2011 and the money recovered was to be used on the education sector.
The sources informed that the club had almost 1000 members and the membership fee was Rs 500,000.
“The current arrears of the tax are for the period from March 9, 2012 to January 2013,” the source said.
In the notice issued to the club, the E&T officials said that if the tax was not paid in time, action would be taken under Land Revenue Act 1967.
When contacted, Rawalpindi Gymkhana administration said that they would follow the decision of Lahore Gymkhana on the issue.