Class-10 (Social Studies) Unit-8 Economic Activities: 1. Economic Planning, 2 Tourism: Importance and Possibilities, 3. Water Resource as Important Energy Source in Nepal, 4 Foreign Employment, 5. Cooperative and its Economic Importance, 6. Financial Education, 7. Financial Instruments/Devices 8. Insurances, 9. Revenue and Tax Collection, &10. Consumers' Right
Unit-8 Economic Activities:
1. Economic Planning
2 Tourism: Importance and Possibilities
3. Water Resource as Important Energy Source in Nepal
4 Foreign Employment
5. Cooperative and its Economic Importance
6. Financial Education
7. Financial Instruments/Devices
8. Insurances
9. Revenue and Tax Collection, &
10. Consumers' Right
8.1 Economic Planning
Plan:
-
Plan is an idea or
strategy to achieve a particular target.
Economic Plan:
-
An economic plan is a
detailed guideline or scheme prepared to achieve certain economic goal. It is
an economic activity conceived, initiated, regulated and controlled by the
state. The USSR is the first country to introduce Economic Plan in 1928 AD.
Current Plan:
-
Any activity with
specified planning that is undergoing at present time to be completed within
the mentioned duration and resources is called Current Plan.
Economic Plan/Planning
-
-Economic Plan is a
programme devised to gain the targeted economic goals.
Features/Characteristics:
i.
Definite Objective
ii.
Periodic
iii.
Plan based on economic
activities
iv.
Interest of Public
benefits
v.
Funding as per design
vi.
Distribution of National
resources
Obstacles behind the
failures of Economic Plans in Nepal:
i.
Ambitious plan
ii.
Widespread corruption
iii.
Unstable political system
and government
iv.
Lack of skilled human
resources
v.
Political interference on
planning mechanism
vi.
Lack of good vision, goal
and objective
Strategies of Fifteenth
Plan
Strategies:
i) To
achieve rapid, sustainable and employable economic growth.
ii) To
ensure accessible and qualitative health service and education.
iii) To
develop sustainable urbanization and housing.
iv) To
develop productions and productivity.
v) To
utilize natural resources.
vi) To
strengthen federalism and good governance.
National Targets of Fifteenth Plan
i)
High and equitable
national income.
ii)
National unity and respect.
iii)
Development of human resources and their full
utilization.
iv)
Strong democracy.
v)
Widespread and modern
infrastructure and high internal relation. viii) Good governance.
vi)
Healthy and balanced
ecosystem.
vii)
Prosper and disciplined
lifestyle.
Challenges and
Opportunities of Current Plan
Challenges
Opportunities
1. Eradication of Poverty due to overlapping obstacles.
1. The new constitution has addressed all the political problems developing base for stable political environment.
2. Developing a nation through a balanced economic growth based on social justice.
2. Fertile land, water resource, forest, minerals and panoramic natural beauty.
3. Generating employment opportunities through industrial investment.
3. Healthy, educated and economically active population is increasing.
4. Removing energy crisis and minimizing risk of disasters.
4. Government policy promotes both private and cooperative sectors.
5. Connecting the rural and urban areas through infrastructural development.
5. Foreign investment is attracted.
1. Write any two features of economic planning.
2. What do you understand by a development plan?
3. When and where was the economic planning started first in the world?
4. When did periodic planning started in Nepal? -2013 BS
Short questions:
1. Write briefly about the history of economic planning in Nepal?
2.What are some as the characteristics/ features of an economic plan? Enlist them and describe briefly.
3. Prepare a six point two year plan of your own family.
- To use land scientifically to increase agricultural production.
-To prioritize cash crops than food grains as we have only a piece of land.
-To continue livestock farming.
-To apply for agricultural loan.
-To take another man’s land in lease for vegetable farming.
4. Explain the opportunities and challenges associated with
current plan. (Long Question)
5. Introduce Economic plan and mention any four problems of
formation and implementation of plan in Nepal and state the measures to solve
the problems. (Long Question)
8.2 Tourism: Importance and Possibilities Tourist: A person who travels various places
either for entertainment and refreshment or for knowledge and education is
called a tourist. Tourism/ Tourism Industry: Tourism is a collection of activities, services and
industries that delivers a travel experience and other hospitality services to
individuals or groups travelling away from home. Great Himalayan Trail: The trekking route form Mt. Kanchanjunga in the east to Mt.
Saipal in the west is known as the Great Himalayan Trail. Importance/Positive
Impacts of Tourism in Nepal - Tourism industry increases trade -It is the source of
foreign currency. - It familiarizes
Nepal in the world. - It increases
employment opportunities. - It supports cottage
industries. - It conserves
traditional art, craft and culture. - It promotes
international relation. - It contributes to
national income. - It helps to
interacts with new idea and technology. - It uplift standard
of lifestyle. Negative
Impacts of Tourism in Nepal -Overcrowding - Destruction of plans
and wildlife. -Extinction of rare
species. - Increase in
Pollutions. -Insufficient food,
fuel and water. - Tourists have
preference over local people. -Disclose of
significant facts about the nation. - Spread of bad
culture and customs. -Smuggling and drug
abuse may increase. - Increase in price of
goods. #Write any four advantages and disadvantages of tourists
visiting to our country. Possibilities of Tourism Industry in
Nepal i) Nature Beauty ii) Presence of Historical and Religious Centres iii) Cultural Diversities (125 castes and ethnic groups and 10 religions) iv) Climatic and Cultural
Variation v) Specific Tourism:
vi) Richness in Flora and Fauna wall climbing,
bungy jump, zip flyer etc) vii) Hospitable Behaviour viii) Observation of Rare plants and animals. ix) Organize various sports like Elephant Polo, Marathan in Mt.
Everest camp etc.
# Nine (9) activities/ programmes related to the promotion
of tourist industry in Nepal. i)
Elephant Polo ii)
Stick Dance iii)
Special Bullock Cart iv)
Jatras v)
Rafting vi)
Fairs vii)
Bunjee Jump viii)
Everest Marathan ix)
Conferences and Seminars. Questions for Practice Very short questions: 1. Why is tourism a
service oriented industry? 2. Define religious
tourism in a sentence. 3. Name two possible
adventure tourism activities not mentioned in the text book. 4. What is the expected
number of foreign tourist at the end of current economic planning? - 1.2
Million 5. Write one each objective of tourist who visit Pokhara and
Lumbini. 6. What do you mean by tourism industry? 7. Nepal has great
potentiality in religious tourism. Why? 8. Write any two advantages of tourism. Short questions: 1. What step should be carried out to promote internal tourism?
Prepare a plan in four points. 2. Prepare a plan to attract tourist in great Himalayan trail in
four points. 3. Write a letter to be sent to Nepal Tourism Board describing
about the measures to promote external tourism in Nepal? 4. Write in brief the possibilities of tourism and its effects
in Nepal. 5. Write any four negative socio-economic impacts in your
community caused by the arrival of the tourist. 6.Write any four practical solutions for improving the Nepalese
tourism ? 8.3 Water Resource as Important Energy Source in Nepal Energy: -Energy is a form
of power produced from different sources like firewood, oil, gas, coal, hydro
or nucleus. Water resource: -Water resources
are the sources of water that are potentially useful for agricultural,
industrial, household, recreational and environmental activities. - Rivers of Nepal
may instantly produce 43500 megawatt of the electricity. - Nepal has the
potentiality to produce 83,000 MW hydroelectricity
which is 2.26% of the world’s total capacity. - The first
hydropower station was the Pharping Project established in
1968 BS, which used to
produce 500 KW electricity known
as Charabatti. Problems
and Challenges for developing hydropower in Nepal i) Inability to have
far reaching vision of politicians. ii) Unscientific
planning and programming. iii) Political
instability caused by dirty politics. iv) Poor governance and lack of firm government
policy. v) Lack of skilled
manpower and technology. vi) Lack of capital
for investment. vii) Deeply rooted
corruption and ineffective bureaucracy. viii) Interruption
from the local community. ix) Inability to
involve local community in development project. Measures/
Ways to end energy crisis in Nepal i) Strong and stable
government is needed. ii) Effective planning
and strong mechanism is needed. iii) Foreign investors
have to be motivated and convinced to invest in hydropower. iv) Road network should
be developed and expanded. v) Internal source of
investment should be sought to complete the project on time. vi) Right demands of the
local people must be fulfilled timely. vii) Hydro powers of
National pride should be completed soon. Questions
for Practice Very short questions: 1. Define water
resources. 2. How much electricity
may be produced from the rivers of Nepal instantly? 3. What is the best use
of floating water in Nepal? 4.What is energy? Write
any four traditional sources of it. 5. Which was the first
hydro power station of Nepal? Mention its capacity. Short questions: 1. Mention any four
advantages of using water properly. 2.There is great
potentiality of water resource in Nepal. Justify. 3. Mention the reason
that Nepal is not able to make best use of water in Nepal. 4. Write any four causes
of energy crisis in Nepal. Or, What can be done to
solve the energy crisis in Nepal? Long Questions: 1. Nepal is a rich
country in water resources in the world but Nepal is not able to generate sufficient
hydroelectricity. Explain its any four causes and any three measures to end
energy crisis that is faced in Nepal. 8.4 Foreign Employment Foreign Employment: The job or employment in the foreign land is called foreign employment. Positive and Negative impacts of Foreign Employment
Reasons
for going out for Foreign Employment/ Reasons
for going abroad to work 1. Lack of opportunities in the nation. 2. No proper opportunities for skilled human resources. 3. Lack of vocational and practical education. 4. Due to problem of ‘Brain drain. 5. Temptation to better payments and facilities. Ways
to remember or preparation before going in foreign employment 1. Learn about the
country we are going in. 2. Develop proper
skill and take training to work safely and easily in the country. 3. Have knowledge of
language, religion and technology used in the country. 4. Gain detailed
knowledge about the work, safety, salary facilities and the country. 5. Be familiar with
the risk factors we may face while in the work. 6. Documentation and
processing should be done from the authorized man power company otherwise we
may fall in the trap of brokers. 7. Consult the
national authority, the embassy or consultant if necessary. Reasons
for going out for Foreign Employment/ Reasons
for going abroad to work 1. Failure of government to apply a systematic and secure
procedures for foreign employment. 2. Fake registered manpower and cheating by brokers. 3. Failure of Nepalese workers to get respectable job in foreign
countries. 4. Lack of wages paid to Nepali workers in the foreign
countries. 5. Lack of skill, training, technology and education among the
Nepali workers. 6. Mass illiteracy and uneducation. 7. Many women become the victim of sexual exploitation and
assault. 8. Lack of medical facilities and life insurance in the foreign
countries. Importance
of Foreign Employment 1. It increases foreign trade. 2. It provides a platform to earn foreign currencies. 3. It boosts GNP. 4. It improves international relation. 5. It increases revenue/
remittance. 6. It utilizes skills of local human resources. 7. It gives publicity to the nation. 8. It has reduced the problems of unemployment. 9. It decreases poverty. 10.It has developed skills and technology in Nepal. The Problems women faced in abroad and their solutions
Questions
for Practice Very short questions: 1. Point out any two drawbacks
of foreign employment with special reference of development activities. 2. Write any one suggestion
to use remittance properly. 3. What is foreign employment? 4. Mention a positive
impact of foreign employment. 5. Write a negative
impact of foreign employment? Short questions: 1.What should we prepare
for going in foreign employment? Write in points. 2. Why are many Nepalese
going out for foreign employment? Write down any four reasons for it. 3. Write the importance
of foreign employment in Nepal. 4. Point out the
challenges of foreign employment. Long Questions: 1. Is foreign employment
good for Nepal? What three steps should be urgently taken to make the Nepalese
youth stay in Nepal itself? Explain. 2. The figure shows that
many women are going for foreign employment. What sorts of problems have been
faced by them in abroad? Write any four problems and five solutions. 3. What problems
Nepalese are facing in foreign employment? What aspects should be improved by
the Nepalese who want to going for foreign employment? Write down. 5. Cooperative and its
Economic Importance Cooperative -Any
firm or business owned, controlled and run by a group of users for their own
benefit is defined as a cooperative. - Robert Owen, a Welsh social reformer, is considered the pioneer of the
cooperative movement. -
The first successful cooperative enterprise in the world is The Rochdale Society of Equitable Pioneers
established in October 24, 1994 AD. -
The first cooperative of Nepal is-Bhakan Cooperative,
established in 2013 BS in Chitwan. - ICA stands for International Cooperative
Alliance. - There are 32,663 registered
primary cooperatives in Nepal. - The National Cooperative Bank Limited works as the
highest regulatory organization. -
They fall under ‘Class-D’ financial
institutions. 7
Guidelines /Principles of Cooperatives 1. Voluntary and Open
Membership 2. Democratic member
control 3. Member economic
participation 4. Autonomy and
Independence 5. Education, training
and information 6. Cooperation among
cooperatives 7. Concern for
community Features/
Characteristics of Cooperatives 1. Open membership 2. Voluntary association 3. State control 4. Sources of finance 5. Democratic management 6. Equal distribution of
benefits Major
Types of Cooperatives 1. Worker Cooperative:
A cooperative owned and democratically governed by its worker owners. 2. Consumer
Cooperative: A cooperative owned by
its customers for their mutual benefits. 3. Producer
Cooperative: A cooperative owned by
its producers for serving their members. 4. Volunteer
Cooperative: A cooperative run by and
for a network of its volunteers’ benefits. 5. Social Cooperative:
A cooperative providing social services to children, elderly and
disabled ones. 6. Business and
Employment Cooperative: A cooperative enabled entrepreneurs to experiment with their business
idea. 7. Housing
Cooperative: A cooperative owned by
its real state of residential buildings. 8. Utility Cooperatives: A cooperative assigned for public
utility such as electricity, water and TC. 9. Agricultural
Cooperative: A cooperative owned by
the farmers for utility of their own resources. Importance
of Cooperatives in Nepal 1. It helps in the capital formation. 2. It strengthens economy of targeted group. 3. It teaches people value of working together or group work.
(It fosters unity and cooperation.) 4. It uplifts living standard of the people. 5. It helps to form systematic planning. 6. It explores the possibility of new areas. 7. It promotes product
oriented feelings. 8. It increases the trend of saving and investment. 9. It supports domestic and small scale industries. 10. It provides loan and helps to develop new markets for
products. Problems
of Cooperatives in Nepal 1. It provides loan to
relatives and friends. (Favoritism) 2. Executive members
are illegally kept from a same family. 3. Investment in real
state without proper study of market. 4. One person
occupying post in multiple cooperatives. 5. No proper audit of
the sum and account. 6. It collects capital
from ordinary people and provides investment to large enterprises. 7. It hardly maintains
transparency. 8. It creates disputes
and differences. For
solutions, go through removing problems: Activities
to make cooperatives more effective and successful in Nepal 1. The government must monitor activities of cooperatives. 2. Cooperatives are guided by their principles. 3. The government ought to convince people to participate in
cooperative activities. 4. The government should encourage the common citizens to take
loan from cooperatives. 5. The government must help in proper mobilizing of available
resources. 6. Transparency, proper management, democratic norms and
systematic decisions are essential. Questions
for Practice Very short questions: 1. What is cooperative? 2. Name the first successful cooperative enterprise of the
world. 3.Which is the first cooperative of Nepal? 4. What does ICA stand for? 5. Write an importance of cooperatives. Questions
for Practice Short questions: 1 Give short introduction of cooperative in Nepal. 2. What are the principles of Cooperative? Make a list. 3. Make a list of importance of Cooperatives. 4. What roles that the
state should play for making cooperatives activities more effectives and
successful? 5. What are the types of cooperatives established in Nepal? 6. There might be a cooperative working in your locality. Write its name and mention its functions
point wise. 7. Write down the problems underlying cooperatives in Nepal. Long questions: 1. How can cooperatives be helpful? Write a letter to your
sister explaining their importance in Nepal. Finance Finance refers to
the science of money management. Financial
Education Financial education
refers to set of skills and knowledge that allows an individual to make
informed and effective decisions with all their financial resources. Importance
of Financial Education i)
It makes us notify
the importance of money. ii)
It eases human
activities. iii)
It encourages us to
save money for future. iv)
It makes us
knowledgeable about investment. v)
It helps to manage
income and expenditure effectively. vi)
It helps us to find out the right areas of
investment. vii)
It makes people
aware of paying tax in time. viii)
It utilizes money
for social and economic security. Measures to make financial education
effective in Nepal i) Basic finance education should be mentioned in the school
curriculum. ii) The campaign to provide financial education should be
launched in every community. iii) “Aama Samuha” should be formed in every community. iv) Uneducated and poor people should be given financial
education. Bank Account A bank account is a type of financial account offered by a
financial institution in which the customer can deposit, save and withdraw
money. To open a bank account in a bank, the bank requires or asks
for following things: -
Identity document such as citizenship, passport (Zerox) -
Recent passport size
photograph (2) -
KYC(Know Your Customer) details with supplementary profile -
Signature of account users (four in numbers) -
Minimum balance as fixed by bank -
Guardians’ citizenship, photo and an application in case of
minors Types of Bank Account 1. Current Account: The customers can deposit
and withdraw any amount of money at any time in opening hours in such account
but no interest is provided by mainly offices, industrialists and
entrepreneurs. 2. Saving Account: The customers can do the
financial transaction as per the limit fixed by the bank with nominal interest in
such account and it is good for small savers. 3. Fixed Account: The customers cannot
withdraw their deposit until the maturity of the date mentioned for and
interest is quite high in such account. E-Banking E-banking refers to all forms of
banking services and transactions performed through electronics means. For example- the payment of bills,
recharging of mobile balance, transferring money from one account to another,
checking the statement etc. 1. ATM Card: ATM stands for Automatic
Teller Machine. It is a computerized device that helps to withdraw money and to
operate other financial activities.
2. Credit Card: A card issued by a financial company giving the credit
holder option to borrow fund usually at the point of sale (shop or online). It
can also be used to withdraw or transfer money form an ATM. 3. Mobile or SMS
banking: The modern banking service provided by financial
institutions that allow customers to conduct financial transaction through the
use of mobile or tablet is called mobile banking. It accomplishes functions
like obtaining account balance, bill payments, fund transfers etc. 4. Internet Banking or
Online Banking: It
offers over 250+ services and facilities that give you real time access to your
account such as Check Account Statement, fund transfer, payment using Net
Banking, open a fixed deposit, Pay utility bills, Pay taxes, Buy general
insurances etc. Kumari Bank Ltd for the first time started in 2002
AD. Savings
and its Advantages The money that is saved, especially
through a bank for future use is called saving. It is the amount left over
expanses and deposited in a bank account or other places. Once we deposit our
money, the bank becomes responsible for loss or any risk. Through our saving,
we can make our money work and earn for us. However, saving has following
advantages: -
Formation of capital. -
Opportunity for
investment -
Interest income -
Habit of
entrepreneurship -
Helpful in need or
urgency. Questions
for Practice Very short questions: 1. What do you mean by financial
education? 2. Write any two forms of saving. 3. Why is depositing a good habit?
Write two advantages. 4. What is E-banking? 5.
What is an ATM? 6.
What is a credit card? Short Questions: 1. Which of the bank account do you
like most? Why? 2. What are the advantages of opening
account in a bank? 3. Write the difference between debit
card and credit card. 4. Point out strengths and weaknesses
of ATM card. 5. What is finance education? Write
its importance in Nepal. 6. What is e-banking? Write briefly. 7. What are the advantages of
e-banking? Mention any four. Long questions: 1. What is saving? Write down benefits
of saving. 2. Write down the types of Bank
Accounts. 3. Analyze the necessity of e-banking
in the present condition of Nepal. 8.7
Financial Instruments/Devices Financial
Instruments: The
tools or assets created for operating the financial system of a country are
called financial instruments. 1. Currency:
Currency is the medium of exchange and the determiner of value.
Nepal Rastra Bank issues currency on behalf of the state or government in our
country. There are two types of
currency: paper note and coin. 2. Bank Loan: Bank loan refers to
the loan or money taken from the bank which has to be returned after certain
period of time with interest by taking something of our property as security
deposit (Collateral).
3. Remittance: A
remittance is the process of sending money from foreign land to home nation
especially by the foreign workers. It has contributed about 30% of Nepal’s GDP.
The proper uses of remittance are: -
Creating investment opportunities. -
Investing in productive areas. -Controlling
unproductive investments. -Conducting awareness programmes. 4. Foreign Exchange: The trend of exchanging
the currency of a country with another one is called foreign exchange. Trade Deficit: Trade deficit is
the amount by which the cost of a country’s import exceeds the value of its
exports. Stock Exchange: Stock
exchange is an organized market for trading of industrial and financial
securities. Such securities include shares and debentures. Shares: Shares
are units of ownership interest in a corporation or financial asset that
provide for an equal distribution in any profits in the form of dividends. Advantages of Shares are: -
People can easily invest in shares. -
Shares have high potential for profits. -
They have limited liability. -
Shares can be easily sold or bought. -
It helps to get better investment. Liability:
Liability is a company’s financial debt or obligation that arises during the
course of its business operation. Liabilities
are settled over a time through the transfer of economic benefits including
money, goods, and services etc. Hundi: A
Hundi is a financial instrument that developed in Medieval India for use in
trade and credit transactions. Hundis
are used as a form of remittance instrument to transfer money from place to
place, as a form of credit instrument to borrow money and a bill of exchange in
trade transactions. It is illegal in Nepal because Hundi users don’t pay tax to
the government. It is not under banking system. Difference
between Debenture and Loan:
Questions
for Practice Very short questions: 1.What do you mean by
financial instruments? 2.Highlight the
importance of currency in a sentence. 3.What are the
disadvantages of sending remittance through Hundi? Write any two. 4. What is remittance? Short questions: 1. Out of all the
financial instruments, which one do you find the most common one? Discuss in
brief. 2. Discuss any four
financial instruments. Long questions: 1. Discuss the advantages
and disadvantages of four financial instruments prevalent in Nepali financial
market. 2. Introduce any five
financial instruments and describe their individual importance. 8.8
Insurances Insurance -Insurance is a contract represented by
a policy which provides financial compensation to insured against loses from an
insurance company. It is done for minimizing the life and non-life risks for
promoting economy. Importance of Insurance: - It reduces financial risk in future. -It compels people to save. - Insurance companies provides required
fund for infrastructure development. - It adds money in totality. - It provides bonus amount. Basic Terms of
Insurance: 1. Insured: The party who wants to protect him/herself against the risk
of financial loss is insured. 2. Insurer: The party who has taken the responsibility of protection to
insured from the financial point of view is insurer. 3. Insured Amount: Insured amount is the total amount for
which the risk and responsibility of compensation is insured. 4. Insurance Premium: It is the instalment or sum of money
paid to the insurer as the compensation of the insurance contract. 5. Insurance Policy: Insurance policy is the written
agreement between insurer and insured.
Things need to be considered while
doing insurance -
Be clear about insurance policy and its main aims. -
Have detailed information about scheme, bonus and securities. -
Mention clearly about desired person. -
Don’t include false information while filling the insurance
form. -
Payment of premium is compulsory. -
Study the insurance policy in detail. -
Know whether the company is registered or not. -
Receive the receipt after the payment. -
Inform the policy and insurance to family members. -
Safeties of agreement papers or keep all the documents safe. Historical Development of Insurance ●The of insurance started from marine
items in Italy. Later, this marine insurance developed to life insurance. ●The life insurance was done in 1583
AD by William Gibbson and the first life insurance law was developed in 1744 AD
in England. ●The first insurance company was
established on 8th Ashwin 2004 BS in Nepal as the Nepal Maal Chalani
Tatha Bitta Company Ltd. Nepal Insuracne Corporation was established in 2024
BS. Presently, 34 insurance companies: 16 non-life insurance and 16 life
insurance functioning as per the
Insurance Act 2049BS. The Nepal life Insurance, a government owned company, has
actively working throughout the nation. Types
of Insurance Insurance are of mainly
four categories: Life insurance, Non-life insurance, Third Party Insurance and
Health insurance 1. Life Insurance: √ 2. Non-Life Insurance: √ 3. Third Party Insurance: It ensures that the third party involved in an
accident is protected. For instance, if the rider met an accident and damaged
another bike, then the cost of the damage to the rider of another bike would be
covered. However you are unlikely to claim your own damage. 4. Health Insurance: This type of policy
ensures health of an individual when he/she is sick and he/she doesn’t have
money for treatment. It is significant for every human being regarding health
risk. Questions
for Practice Very short questions: 1. When and where was
insurance first started? 2. What are the main
types of insurance? Name them. 3. Write one positive
type of insurance. 4. What do you mean by
insurance? 5. What do you mean by
life insurance? 6. What do you mean by
non-life insurance? Short questions: 1. What are the
differences between life and non-life insurance? 2. Discuss the various
advantages of insurance. 3. What are the things
to be considered while doing insurance? Write in four points. Long Questions: 1. Why is non-life
insurance necessary? Mention its importance in the context of an agricultural
country like Nepal. 2. What is insurance?
Explain the types of insurance. 3. An insurance is
always a good thing to do. Discuss any 4 prospects and 3 challenges of
insurance in Nepal. 8.9 Revenue and Tax Collection Government Revenue/ Revenue: It refers to the government’s
annual income from various sources. 2 Types of Revenue: Tax Revenue and
Non-Tax Revenue 1. Tax Revenue: The revenue collected by the
government from taxes on income and profit, social security contribution, goods
and services etc. is known as tax revenue. It is a tax that people have to pay
to the government. For instance, import and export tax, agricultural
improvement tax, value added tax, health service tax, education service tax,
income tax, land tax, housing and property tax, land registration tax, custom
duty etc. Tax based on Nature: Direct Tax and Indirect
Tax 1. Direct Tax:
Direct tax is directly charged on an individual or an organization to an
imposing authority. For instance, income tax, land tax, rent tax, vehicle tax
etc. Merits: Progressive and economic, flexible:
rate can be increased or decreased, awareness based, democratic. Demerits: tax cheating, dishonesty, saving at
risk, mental pressure, corruption and bribery. 2. Indirect Tax: Tax in which the burden of
tax can be shifted fully or partially to others is called indirect tax. For
instance, custom duties, value added tax, excise duty etc. The tax we pay in a
hotel bill as we stay there is a fine example of it. Merits:
Unlimited participation, flexible and honesty based, No mental pressure, large
coverage of revenue, less cheating of tax etc Demerits:
Uncertain, lacks equality, immoral and subjective, need of more workforces etc 2. Non-tax Revenue:
The revenue collected from the sources other than tax revenue is called non-tax
revenue. The government collects revenue for the services provided to citizens
such as electricity bill, water bill, telephone bill, charge of fees, penalty
and fine etc. The government also obtains non-tax revenue from the gift,
donation, and public property, seize of illegal property, income from the rent,
interest etc. Some Popular Taxes in Nepal: 1. Value Added Tax (VAT): VAT refers to the tax collected by the
government in the increasing value of
goods and services during their production and distribution. It is the most
recent tax introduced in the world, mainly from France in 1954 A.D. It is an
indirect tax charge in the goods and services. Nepal implemented the policy of
tax from 2054 B.S. (1997 A.D.) Any firm having more than 10 lakhs transaction
has to register in VAT. The normal VAT rate in Nepal is 13%. Merits: Revenue increment, transparency, reduces cheating, encourage export etc. Demerits: increase price,
difficult tax system, increase management expenditure, possibility of leakage
and cheating etc. 2. Excise: The tax which is to be paid on
luxurious group and commodities produced or sold inside the country with a view
to discourage the customers in their use. It is an old form of tax. For
instance, the tax imposed on wine, cigarette, noodles, plastic, vehicles, TV,
printing materials and other products. Such goods are mainly grouped into three
categories: tobacco group, alcohol group, and self exporting groups. 3. Custom Duty: The custom is an indirect and
subjective tax which is collected by the government at the border of a country
while exporting or importing goods and services. The rate of custom duty
differs as per laws in different goods. The major custom offices in Nepal are
the TIA, Kakarbhitta, Biratnagarr, Bhairahwa, Nepalgunj, and Tatopani. 4. Income Tax: Tax generally imposed on
the income of an individual or organization is known as income tax. It is
oldest form of tax charged in animal rearing, fishing, and agriculture. It also
includes business, job, investment, and other economic activities now a days. 5. Land Revenue Tax: Tax
collected by the government from landlords while purchasing, selling and
holding land. Questions for Practice Very short questions: 1. What is the full form
of VAT? What is the percentage of VAT according to the Nepalese law? 2. What is tax revenue?
Define in a sentence. ☻Write very short
questions from the textbook page no. 376
(Question No. a, b, c & d). Short
questions: 1. What are the demerits of VAT? Point out in four. 2. Why is excise considered as an important tax? ☻Write very short questions from the textbook page no. 376 (Question
No. a & b). Long questions: 1. What is tax? Introduce any four popular taxes practiced in
Nepal. ☻Write long question from the textbook page no. 376 (Question
No. a) 8.10 Consumers’ Right A Consumer: A consumer is
an individual, organization or company who/which uses or buys goods and services for personal
use. Consumers’ Rights: The rights and
protection of the consumers regarding their consumption of goods and services. Consumers International (CI): Consumers
international is a global organization campaigning voice of consumers to
protect them from being cheated and empowering them. It has over 240 member
organizations spreading over 120 countries. The UNO and Consumer Right: The first law related to consumer right was
formulated in the USA on 15th March 1963 A.D. The same 15th
March is celebrated as the International
Consumers’ Day. According to the UNO, there are eight basic rights of consumers: 1.
The right to satisfaction of basic needs. 2.
The right to safety. 3.
The right to be informed. 4.
The right to choose products and services. 5.
The right to be heard. 6.
The right to redress. 7.
The right to consumer education. 8.
The right to a healthy environment. Consumer Protection Act, 2054 (implemented on
1st Baisakh 2055 in Nepal) has guaranteed the following rights to
the consumers: 1.
Right to be safe from food which are harmful to our health. 2.
Right to be informed of price, quality,
purity etc. 3.
Right to choose the goods and services in the competitive market. 4.
Right to get reliable service from the concerned authority. 5.
Right to compensation from food adulteration, cheating etc. 6.
Right of consumer’s education. According to Consumer Protection Act-2057
in Nepal, the producer has to clearly mention the given things in the selling products: 1.
Name, address and registration number of the producer. 2.
Ingredients of manufactured goods, quantity and weight. 3.
Quality of the items whose quality has been tested (the Standard). 4.
The way using goods and possible impacts. 5.
Price, batch number, production date and expiry date of goods. 6.
Warranty period, tested mark and other required information in case of
electronic products. 7.
Protection and safety measures in inflammable and fragile commodities. Advantages/ Benefits of Consumers’
Education: Consumer
education is the process of providing the knowledge and skills needed in
managing consumer resources and taking actions to influence the factors which
affect consumer’s decisions. -
Consumers
get chance to make proper choice. -
They
get aware about the problems in purchasing goods or service. -
It
makes people informed about market. -
They
learn about the quality of goods. -
They
have knowledge about legal provision of their rights. -
It
helps them in purchasing satisfactory products. Questions for Practice Very
short questions: 1.
What is consumer’s right? Write clearly. 2.
What is consumer International? ☻Write very short questions from the textbook
page no. 379(Question No. a, b, c & e). Short
questions: 1.
What suggestions would you give to a guardian going to buy goods in market?
Mention in four points. 2.
Write down the consumers’ rights listed in Consumer’s Protection Act 2054 B.S. ☻Write very short questions from the
textbook page no. 380(Question No. a & b). Long Questions: 1. Write an editorial shedding light on
the efforts the government should made for the protection of Consumer’s Right.
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