Canada Eliminates Penny Costing Penny-and-
a-Half to Make
03-30-2012 02:07 PM
Anyone think that the US will be next to ditch the cent ?
The penny, with two maple leafs on one side and Queen Elizabeth II on the other, can continue to be used in payments. As they are gradually withdrawn from circulation, price rounding on cash transactions will be required, the government said.
The calculation of the federal goods and services tax and provincial sales taxes will continue to be calculated to the penny and added to the price, with rounding only taking place on the total payment.
Non-cash payments on checks and credit cards will continue to be rounded to the nearest cent.
“If businesses round cash transactions to the nearest five-cent increment, any gains or losses relating to cash transactions (a maximum of two cents per transaction) will balance out over time,” the government said in its budget documents.