The Canadian “give a penny, take a penny” tray industry has just been hit with some sad news. The new federal budget for our neighbors to the north has done away with the coin that costs more to make than it’s actually worth.
“Pennies take up too much space on our dressers at home,” said Canadian Finance Minister Jim Flaherty. “They take up far too much time for small businesses trying to grow and create jobs.”
According to Toronto’s Globe and Mail, the mint will end penny production in April and distribution of the coins will end in the fall.
“It costs taxpayers a penny-and-a-half every time we make one,” explained Flaherty. “Therefore we will stop making them.”
It’s estimated the government will save $11 million a year by not making and distributing the penny.
One study claims that the private sector in Canada currently spends $150 million each year counting, storing and transporting pennies.
For Canadians paying with plastic or checks, prices for everything will remain the same. But paying in cash will require rounding to the nearest $.05 increment of the after-tax price.
Ottawa to scrap the penny this year [Globe & Mail]
Thanks to Ugly for the tip!