'Farewell to the Penny' Commemorative Coins
5 Coin Set
Summary of 'Farewell to the Penny' Commemorative Coins
|2012||Farewell to the Penny - 1/25 Ounce||12,000||1 Cent||.9999 pure gold|
|2012||Farewell to the Penny - 7.96 grams||250,000||$20||.9999 pure silver|
|2012||Farewell to the Penny - 1/2 Ounce||30,000||1 Cent||.9999 pure silver - Selective Gold Plating|
|2012||Farewell to the Penny - 5 Ounces||1,500||1 Cent||.9999 pure silver|
|2012||Farewell to the Penny - 5 Coin Set||5,000||1 Cent||.9999 pure silver - Featuring the 5 past designs of the penny|
Eliminating the Penny - Background Information
On July 30, 2012, the Honourable Jim Flaherty, Minister of Finance, officially announced that the Mint will stop circulating pennies as of February 4, 2013. This transition date will not require new production of pennies, as the existing supply available for circulation is sufficient to cover that period.
- In Economic Action Plan 2012, the Government of Canada announced it will eliminate the penny from Canada's coinage system.
- Over time, the penny's burden to the economy has grown relative to its value as a means of payment. It costs the Government of Canada 1.6 cents to produce each new penny. The estimated cost to the Government of Canada of supplying pennies to the economy is about $11 million a year.
- Due to inflation, the penny's purchasing power has eroded over the years. Today it retains only about one-twentieth of its original purchasing power. Given its declining purchasing value, some Canadians consider the penny more of a nuisance than a useful coin.
- While the cent will remain Canada's smallest unit for pricing goods and services, the Royal Canadian Mint will no longer distribute pennies as of Fall 2012.
- The penny will retain its value indefinitely and can continue to be used in payments. However, as pennies are gradually withdrawn from circulation, price rounding on cash transactions will be required.
- In removing its lowest denomination coin, Canada will follow on the successful experiences of many other countries, including Australia, Norway, Switzerland and the United Kingdom.
What It Means For Consumers
What It Means For Businesses
A rounding guideline that has been adopted in other countries, and that will be adopted by the federal government for cash transactions with the Canadian public, is:
The calculation of the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) on purchases, whether for cash or non-cash transactions, will continue to be calculated to the penny and added to the price. It is only the total cash payment for the transaction that will be rounded.
This information gathered from: http://www.mint.ca/store/mint/learn/eliminating-the-penny-6900002