Businesses in Davidson don’t seem too worried about the demise of the penny in Canadian currency.
Starting today, businesses will be rounding cash transactions up or down to the nearest five-cent increment according to a guideline provided by the Government of Canada. According to the guideline, only the final amount, after taxes have been added, are subject to rounding.
For example, if a final amount owing is $1.01 to $1.02 the figure will be rounded down to $1, while if the amount is $1.03 or $1.04 the figure will be rounded up to $1.05.
“We’re almost there,” said Natasha Larsh, co-manager of Gunner’s Gas and Convenience, on whether they’re prepared for the change. “When we first opened we were rounding everything off anyways. There are just a few products we need to change.”
Pennies can still be used in cash transactions indefinitely and the rounding off policy does not apply to cheques or electronic payments such as debit, credit or payment cards.
Kamal Saini, supervisor at Davidson’s A&W restaurant, said the tills have already been configured to take the rounding policy on cash transactions into account and there have been signs posted on the tills leading up to the change to inform customers. He said the prices of food would not actually change.
“The tills are going to change, but not the prices on the menu boards,” said Saini.
By phasing out the penny as a Canadian coin, the government states it will save taxpayers $11 million a year. This savings comes from the rising cost of production of the one-cent coin compared to it’s worth, the amount of pennies that are lying around Canadian households right now and the handling costs imposed on retailers with the penny.
Judi Packet, co-owner of Packet’s Foods, said the phasing out of the penny is not going to affect them in any way as they’ve already been rounding off transactions for about the past four years.
“We’re a coffee shop,” said Packet. “We didn’t want to deal with pennies in the first place.”