Today, February 4th 2013, is the official retirement of the Canadian penny. Some may mourn its passing however I am more concerned with the practical considerations, are all prices going to be rounded to the nearest 5c? What about taxes, won’t that create more pennies? Where do all the rounded pennies come from and go? Do the businesses have to suck up the difference, is there a gigantic rounded penny piggy bank somewhere supplementing our tax income? Here’s what I’ve found out so far…
After the penny
- Price rounding officially begins Feb. 4, though businesses may still accept the coin.
- According to Canada?s Currency Act, you can only spend 25 pennies at once. You can always roll up more and bring them to the bank.
- Prices round up, and down. So $1.01 or $1.02 would round down to $1, while $1.03, $1.04 round up to $1.05.
- Rounding only takes place after taxes have been added.
- If you can?t stand that, use your credit or debit card. You will be charged to the exact cent.
Happy End of Penny Day!