The Federal Board of Revenue has clarified that the "manufacturer-cum-exporter," covers a person whose exports for the preceding tax year constitute 80 percent or more of the manufactured goods.
According to an income tax circular 10 of 2008, vide the Finance Act, 2008, a new clause (66) of Part IV of the Second Schedule has been inserted in the Income Tax Ordinance, 2001, which provides exemption from withholding tax to "manufacturer-cum-exporter" from the provisions of Section 235 of the Income Tax Ordinance, 2001, where the electricity bill exceeds Rs 20000 per month.
The Board has received queries regarding the term "manufacturer-cum-exporter". It is, hereby, clarified that the term "manufacturer-cum-exporter," means a person whose exports for the preceding tax year constitute 80 percent or more of the goods manufactured by him, the circular added.