49.5k views
5 votes
7% only at the consumer unless item or service is tax-exempt, on behalf of the ministry of finance and corporate relations

A. Goods and Services Tax (GST)
B. Property Tax
C. Customs Duty
D. Luxury Tax

1 Answer

5 votes

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.

User Pmont
by
7.8k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories