Royal Mint of Canada Scraps the Penny – How Can We Profit?
Stores will use the government guide lines to round off to the nearest nickel. However, if you are paying with a credit card, debit card or by check then you will be paying in the exact denomination. Paying with money will be rounded off to the nearest nickel.
Government guidelines are not a law yet, however as an example if a costumer buys a product for $1.01 or $1.02 after taxes then businesses should charge $1.00. Another example if the costumer buys a product for $1.03 or $1.04 after taxes then businesses can charge $1.05.
Anyone visiting Canada should know that we have 2 sales taxes. They are the federal and provincial governments. Canada is the federal and the provincial represents the 10 provinces in Canada.
The present value of a penny made out of metal, zinc and very little copper costs 1.6 cents to manufacture. In 2011 the Canadian Government made 662,750,000 pennies at a cost just under 11 million dollars of tax payers money.
Let’s not forget that we also have pure copper pennies in circulation right now and they are worth more melted as a scrap metal then if they remain in circulation. Note that it is illegal to scarp or deface any kind of money.
The one cent will remain legal to use indefinitely but businesses can refuse them. Financial institutions accept them and even have coin counters to help you count them in seconds. These pennies will be transferred to the Royal Mint of Canada to be melted down for scrap metal.
The Royal Canadian Mint expects to collect 82 million kilo grams of pennies in just a few years. This alone should get the government more than their money invested which I hope they will put to good use.