The federal government is set to launch a simplified tax scheme for traders on August 14, offering incentives to those who file their income tax returns by the September 30 deadline, sources told.

Prime Minister Shehbaz Sharif is expected to unveil the new scheme alongside the income tax return forms for the current fiscal year.

Under the proposed plan, traders submitting their returns before September 30 will qualify for a waiver of the registration fee under the easy tax scheme. The government is also considering additional incentives for early filers.

Sources said eligible traders will receive a registration plate valued at Rs. 25,000 without paying the registration fee.

However, traders registering after September 30 may be required to pay a Rs. 25,000 registration fee along with an additional Rs. 25,000 penalty.

The government is also expected to introduce separate income tax return forms for individuals and businesses as part of the reforms.

Both the simplified trader tax scheme and the revised income tax return forms are likely to be launched on August 14.