KARACHI: Over a billion rupees are stuck up with Large Taxpayers Unit (LTU-II) Karachi, as sales tax divisions have not been activated at the unit since its inception two months back, hence no refunds.

Sources said corporate sales tax refund claims had piled up to Rs1.0 billion, but LTU-II was unable to issue refunds because PRAL Islamabad had not activated the sales tax divisions.

Pakistan Revenue Automation Limited (PRAL) is the information technology wing of Federal Board of Revenue (FBR).

Umer Soomro is Manager PRAL Karachi and he has formed sales tax folders in the system, which needs to be activated for processing of refunds.

Sources said the requisition in this regard was sent to PRAL Islamabad soon after LTU-II was constituted, but the same were not activated.

FBR constituted Large Taxpayers Unit (LTU-II) Karachi in January 2016. This is the fourth large taxpayers unit in the country after LTU Karachi, LTU Lahore and LTU Islamabad.

The office of Abdul Shakoor Sheikh Additional Commissioner (Hqrs) LTU-II Karachi confirmed that sales tax refunds had not been issued as some formalities were pending completion on the part of PRAL Islamabad.

Large taxpayers units (LTUs) deal with the quality taxpayers having high turnover including banks, brokerage houses, industries and other listed companies.