Penny's days are now over

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Renee Gruszecki displays jewelry she designs from coins at her studio, Coin Coin designs & Co., in Halifax on Saturday, Feb. 2, 2013. Many of Gruszecki's personalized creations feature the Canadian one cent coin which has been phased out by the federal government in a cost-saving move.

The long awaited end of the penny's life is now here.

The Canadian Mint will stop circulating pennies as of today, Feb. 4

Islanders who pay cash for goods and services should be aware of the transition, says Finance Minister Wes Sheridan.

“The federal government is encouraging businesses to round their cash transactions,” says Sheridan.

“We decided to adopt the federal guidelines, which is consistent with what we’re hearing from the other provinces.”

As a result, cash payments for a product or service at any Government of Prince Edward Island office will be rounded up, or down, according to the guidelines.

The federal guidelines are as follows:

• Amounts ending in 1 cent and 2 cents are rounded down to the nearest 10 cents;

• Amounts ending in 3 cents and 4 cents are rounded up to the nearest 5 cents;

• Amounts ending in 6 cents and 7 cents are rounded down to the nearest 5 cents;

• Amounts ending in 8 cents and 9 cents are rounded up t o the nearest 10 cents.

The rounding only applies to cash payments.

The Department of Finance is estimating phasing out the penny will save taxpayers about $11-million per year.

 

 

Organizations: Canadian Mint, Department of Finance

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Recent comments

  • come on
    February 04, 2013 - 09:23

    shirley--- it means 4.51$ will be 4.50 $ ---not 4.55 $ or 4.60$

  • Peiguy
    February 04, 2013 - 07:46

    So is that rounded down before the taxes are added or after the Government add the tax or the tax on the tax? How many round downs does the store keeper have to absorb before they jack the prices up since the government will want every "penny" oops five cent portion? Calculated and remitted with precision. Groan! another spin off effect that will end up costing Islanders more money.

  • Joe Blow
    February 03, 2013 - 23:37

    So getting rid of the penny will save taxpayers about $11 million per year....but where exactly is that $11 million going to end up??? Expense accounts for politicians?? Towards fighter jets? To help pay for pipelines? Maybe a payoff for some crooked politician that is retiring? One thing is for sure....taxpayers will not receive eny extra services from it and job will still be cut dispite saving $11 million. Rest assured....this money will end up in politicians pockets one way or another.

  • Shirley
    February 03, 2013 - 22:01

    Why is 1 and 2 cents not rounded up to nearest 5 cents why to 10 cents?????

    • what goes up must come down
      February 04, 2013 - 12:53

      Amounts ending in 1 cent and 2 cents are rounded down to the nearest 10 cents;

  • PEI Shopper
    February 03, 2013 - 21:25

    What will happen to the slow-poke "Old Grannies" that love to count out their pennies at the checkout?

  • intobed
    February 03, 2013 - 20:25

    Does that mean the price of gas will go up each month by a nickle or dime, rather than just pennies a liter?