Final answer:
The 7% tax described that is applied only to the consumer, unless the item or service is tax-exempt, refers to the Goods and Services Tax (GST), which is a type of sales tax.
Step-by-step explanation:
The tax being described as '7% only at the consumer unless item or service is tax-exempt, on behalf of the ministry of finance and corporate relations' is the Goods and Services Tax (GST). This is a sales tax which is levied as a percentage of the sale of goods and services, typically at the point of purchase.
Sales taxes are applied to a range of goods and services, with certain items such as food and medicine often exempt to prevent them from being regressive, which is when a tax takes a larger percentage from low-income earners.
Unlike excise taxes, which are placed on specific goods like gasoline and cigarettes, or property taxes, sales taxes like GST are more broad-based and not tied to particular products.
In contrast, customs duties are levied on imported goods, and luxury taxes are imposed on items considered to be non-essential or luxury items.