On March 29th, in the Economic Action Plan 2012, the Government announced it will eliminate the penny from Canada’s coinage system.   Since that announcement, RCC has heard concerns from members as to how this initiative will be implemented and the need for more detailed information.

Background:

The Government has proposed that the Royal Canadian Mint cease distribution of pennies effective this Fall 2012 and have proposed a system of “rounding” to be applied to cash transactions. 

Current Status:

At the time of the announcement, the Government released a series of “fact sheets” (attached) that outlined their analysis of the impact of this initiative on consumers and on businesses.  They also provided details as to their expectations relating to a “rounding guideline”.  

Fact Sheet and FAQs – Rounding

RCC has maintained that it will be essential for the Federal Government to ensure that consumers are educated well in advance of the implementation of this initiative as to the new “guidelines” so that retailers are not left with the responsibility of providing that information at the cash.

NEXT STEPS:

The Government is seeking public comment on its proposal to eliminate the penny and is welcoming submissions until May 31, 2012.

In the coming weeks, RCC will be working with members to identify concerns with the government’s proposal and to develop a comprehensive response.

Other useful links:

Fact Sheet and FAQs – Businesses
Backgrounder: Withdrawing the Penny from Circulation

If you have any questions or concerns, please don’t hesitate to contact us at [email protected].