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The Economics of Vehicle import taxes!

Economics is a science and study of maximizing the social outcome of the all the available resources. The forces of demand and supply always determine this outcome, which economists call an economic equilibrium.

This equilibrium is a self-correcting phenomenon of real market need that is reflected by “an equilibrium price” at which both the forces come in harmony and hence buyers and sellers irrespective of their size become price-takers. Economists do of course distinguish market equilibrium from a social one. The argument here is that in only considering the free market forces of supply and demand, we are often neglecting a significant cost consideration: the social cost.

Classical Economists are of the view that such social equilibrium can always be achieved if the forces of supply and demand are drawn such that these externalities are internalized. Keynesians on the other hand point out that Government interference to shift the forces of demand and supply is vital to construct a new optimum equilibrium, which considers all the costs (including social costs).

Government interference can come in various forms – taxes, subsidy, support prices, etc. This write-up will concentrate on how Government can use taxes to curb the negative effects of free market equilibrium which has failed to maximize social welfare.

Everybody knows that Nepal Government puts heavy taxes on all motor vehicle imports. This works quite well on two fronts; it obviously helps the cash starved government, and it also keeps a check on the amount of petroleum imports (which is rising alarming even now). The petroleum imports, the pollution of environment, and import of more motor vehicles than the current infrastructure can support are obvious negative effects of the vehicle imports industry of Nepal.

In one recent media interaction, when asked why Vehicle imports tax was so steep, secretary of Ministry of Finance told “Nepal simply cannot afford cheap cars.” The statement is exactly fitting. Given the present scenario, I think it makes sense for Government to hike the taxes on all car imports and relax the taxes on public vehicles. I would not be hence surprised that owning a car in Nepal will continue to be a luxury only the very rich can afford in foreseeable future.

It is one policy measure that the government has to take to guarantee “maximum social welfare” and not only “maximum economic welfare”. The economic equilibrium is very far from the social equilibrium and this has to be corrected by Government Intervention.

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KOOPA: Our Multi-million Tree!

Right!

At the time when we are giving final finishing touches to our biggest endeavor till date, me and khelu, the co-founders of Turtle Inc. have high hopes and biggest dreams that one can have as a creator.

The name is called KOOPA. Inspired by Nintendo’s animated turtle creatures, Turtle Inc. joined hands with the creative legend AD to shape out and fuel KOOPA, the next big thing. In making a kick ass LAN site (neyull dont laugh), we have tried hard to keep everyone’s interest in mind.

Since the site’s success is all about getting it become popular, we have thought about different campaigns that would atleast make everyone aware of the site.

Someday, when the site goes big, we will all earn big bucks and recruit people and budding talents will be queing up to join the best IT firm in the world. That is how high the hopes are with our baby project.

Best of luck KOOPA
🙂

Subsidise ciarettes or?

Yes, I am a smoker. And, I have rights to speak out my mind just like all you anti-smoking campaigners and policy makers have a right to to get pissed and protest about it. But, I here will provide you with a valid and a sincere opinion on why cigarettes should be subsidised.

Cigarette is an addiction. I agree and once that 0.5 mg of nicotine in each cigarette starts flowing through your blood you cant get enough of it. It is like oxygen to the blood or at least for the state your mind goes into after your first puff. Right now, as I can see governments from all the nations are trying to exploit the above fact very well. Generating revenues is a massive task and it is an uphill climb if all your tax payers are trying to hide their earnings from you as much as they can. But, in smokers they find a handicapped bunch of people who would pay just about anything to get that next puff of the irresistible smoke. So, they decided to exploit us. How? You may ask. It’s simple. Increase the price of the cigarettes every two weeks.

Now, if this was petrol or kerosene, bare in mind how much they contribute to the green-house gases and the global warming, all the party activists, no matter what party they belong to would go up in arms and let the government know exactly what they really think of them and their policies. We on the other hand have no committee or an organisation to support us. So, there is no way at least on this earth that we could really do anything about the price hikes. And, smokers are really not concerned about the price tag any way. And even if they are, they would keep their lips zipped with the fear of making themselves an anti-social element or a social outcast. So, the government has nothing to fear about when they increase the price two-folds in just over a month.

Now, after the illustration on how the government is exploiting us, moving to the jinx of the topic. All the scientific communities of the world agree that smokers are in more risk of getting all kinds of cancer and respiratory tract problems. So, just going by that logic, it is essential for them that they save a vital amount of their money for their health-care which would soon be needed for them in a not so distant future. But, the price of the cigarettes is increasing, so they are not saving much. Would it not be a wiser decision to subsidise cigarettes so that they could attend to their health care with more capital when they do get sick?

And, if this theory makes all you people sick, I will tell you burning gas that u get in subsidised rate makes me sick too and makes the whole earth go warmer. I think that is a bigger issue than just a portion of the world’s population getting some kind of sickness. See what you guys are doing is encouraging the earth to go hotter everyday. There is not much of a difference between us expect for a fact that you guys destroy a much bigger entity than we do and yet u get the governments’ backing.

Now, if you think this is crazy, at least we should have subsidies for our future health care. Because, we cant just go on paying more taxes than any other and not get special treatment when we need the most. So, if you guys are taking more money from our pockets(which I still believe is unethical), may be perhaps you guys should collect all that money and invest it into a cancer research program or in making a special health care for all those smokers. Because, you are filling in your pockets with our money and if we don’t get any subsidies or better treatment that’s just a massive fraud the world has ever witnessed.

Feeling Good.

I felt good today after so many days. In fact I have been feeling good since yesterday. And it was all due to an unexpected bump into Runa & Co. It was so much fun today and yesterday. The chatters didn’t seem to end at all. Though we missed chaure, minal and others from the PRASMA and DARKSS, I was all of a sudden among friends again.

What I have realized is that when you are in a relationship you tend to let friendship slip away a little. And now that I am single again, all of a sudden I fear my lack of friends. From a person whom friends would surround and really good ones at that, I have become a person with no one to hang out with when I come home. And probably, that’s why I felt so strongly towards being together today. It was both like and unlike old days. What had changed probably was the fact that I was sitting with people with probably a brighter future than me. But, Life’s a roller-coaster. You just cant judge it ever.

I dont know what I am typing today. Its just that I wanted to type somehing about the evening that I enjoyed a lot after such a long time. And probably I need to practice some writing anyways. Because its probably just me and Runit who are suppose to keep the LMC’s blogs. And we have big plans for LMC as such and probably a great story to tell to all the LMC family, friends and well-wishers. lol!

Just a Thought..

You know, I think I should start maintaining a diary again. It could do just a right thing for me. Rewinding a day. When you are maintaining a diary, what you do is; rewind the whole day searching for something that you could/should record. And when you don’t find something good to write about one day, you make sure you do something worthwhile the very next day; so that you could fill up your diaries’ pages the very next day. And, that could just help me because then I would be always alarmed if I was not doing anything constructive for a long time.
I know why I stopped maintaining a diary before. I think it was in MNNIT itself that I got really furious about someone reading my diary and that too very very personal parts. But now all of a sudden it doesnt matter to me. I dont care what other people should think reading about me. It is who I am and if they do find out what I really I am it is their luck; either good or bad.
Its just a thought. one of many thoughts that comes across my mind on improving my studies. take care amie.

Silly Comparision.

I often compare reading one’s own article with seeing oneself in the mirror. Because one never gets tired of reading one’s own articles just like one never gets tired of looking oneself into a mirror. And no matter how bad/good one looks or has written it always is good and feels right to the first person. And that’s a startling resemblance, dont you think?

The Catch Up!

As I often do, there is so much to catch up with in this blog. But, its good this way. Now, atleast I will end up writing a long and a logical blog that is not just supposed to be read by myself. I think any other person reading my blog is just another guy that I know, and happened to check it out just because I made him too. Any ways, I should not be deterred by this low attendance of readers, I should be wrting this thing for the greater mass that I think will read this. Hopefully.

Anyways, from the time I wrote my last blog(excluding Twenty Four), a lot has gone by. First was my visit to Lucknow, a trip fully sponsored by the the college’s alumni, lucknow chapter. Had fun that day, went to a fucked up water park, then got lucky with drinks in the party that night. We were all high when we boarded the bus in return.

Second, was just two day later when I joined the college’s football team to go to this Inter NIT football meet. We were runner ups there. Had quite a good time. But, we returned broke. And the college has still not retunred our 800 odd bucks that we spend going and coming there.

Then, Khelu joined us to a trip to my place. Seven days were a fun-filled hoidays, and a trip to pokhara was just the icing on the cake that made our holidays memorable with lots of things to cheer about.

Now, one week after the return, and another CT, life is shitty again. And the world is shitty again. A week before North Korea carried out its Nuke- exercise. And back home, Girija and Prachanda backed out of the meeting due to massive differences in specific issues. I think the issue was the monarchy.

Twenty Four

Twenty Four is the number of persons that were on board the Shri Airlines chopper 9N-AHJ (MI-172). They had completed their task of handing over the Kanchanjunga Conservation Area to the local community. Five minutes after it took off from Dhunsa ( a place I had never heard the name of until this morning), it had lost contact with the towers guiding it. It’s whereabout as I write this blog is still not known.

Its really wierd, why I decided to write a blog on a tragic incident such as this. But, chatting with runit a little while ago, made me realize how sad I was with the whole thing. It was the first day(Ghatasthapana) of the greatest festival of Nepali and yet for the family of those 24 people (nepali and foreigners included) it brought with it the most horrific and shocking news of their lives. Yes, we are a bunch of jolly people, but events like this always reminds us (at least to me it does) of the more recent past that saw bloodshed and things that nobody wants or wanted.

I have a fear that this may be a sign of things to come. I am not a firm believer of omens, but offlate, few of the signs have come true. And, I am worried that my worry may turn into a reality and my country would plunge into yet another political spin hat would take years to solve.

There was another news that said, a breakaway faction of Maoists (Janatantrik Terai Mukti Morcha JTMM) killed a MP. Even if everything goes according to the grand-plan of the “Grand Constituent Assembly” and the restoration of a system decided by it, there will always be some faction (small or big) that will be killing people senselessly, like it has been done for the last decade. I know all this sounds really pessimistic, but the Maoists (u like them or not) have taught a new lesson to the Nepalese. If you want to be heard you have to take up the arms.

The only hope for me right now is to stop thinking about all these negative thoughts and think about a peaceful and calm Nepal that I once as kid saw and grew up in. Jaya Nepal. I will always be proud of you my motherland. love.

Shri Pashupatinathle Hami Sabai ko Rakshya Garun!

The Optimistic Blog

Dated: 21-08-06

Seven days from now is the Class Test 1. It may be a no big deal for absolutely everybody. But, it is a big big one for me. It is my chance (and probably the only one) to prove to myself that I still have the ability to crack anything that I want.

Leading upto it, I have been trying to keep myself upbeat and optimistic. So, I have been doing stuffs that would make me feel good. The secret to feel good as somebody simple said is to eat good, dress good, sleep good, and read good. So, I have been avoiding all the pessimistic news that would otherwise surround me.

Like, if the mess food is no good, I would go out to eat not bothering about my pocket. I would even not read about the Lebanese conflict. Actually, I read the article about the truce but I did not click on the article that read,” UN not happy with violators of the truce:Israel”. For one week atleast, I am not getting depressed.

I am looking at my peers and other pople and focusing on factors that I am better in than them. Even though, there are very few, they are enough to make me upbeat. So, it is exactly what the doctor has prescribed.

The only thing that is not working well though are my studies. i am working at it and I assure all you guys that it will be in place very soon. Take care.

P.S. Be an optimist. It makes you smile.

The Republic?

From my past blogs; (This actually is an article before I started blogging)

December 16 2005

“People’s Republic of Nepal”. I read this in one of the blog sites and i snapped back to read its contents. It was very unusual. The official name of Nepal would always be preceded by the glorious “The Kingdom of” and though it still is called the same, many inside and outside the country believe at some point of time in future the official name of the country may be the one mentioned in the blog site.

Every Nepali soul in the universe will surely react to the above paragraph. The Nepalese kingdom with its glorious and proud history ( atleast in the nepalese history books untill the secondary education) preaches of our glorious past and an undoubtedly strong bond between the king and his people. Ask any Nepali “Would like to give up your kingdom for a republic?” The first answer will be an angry “No.” Then after the question sinks in and he analyses what it means in the present scenario he might not be able to give you an answer. We are the citizen of the only hindu kingdom. There is a pride associated with the word kingdom for Nepalese. But the question is in today’s world of liberalism and free society can pride be the only agenda that the public would think upon when they decide on what kind of administration they want?