TORONTO, Ont. – Businesses have begun phasing out the penny after the Federal Government announced in 2012 that the penny would no longer be used.
Most business will accept the penny in cash payments until July 1, 2013, debit and credit card payments will not be affected by the phase out.
Businesses in the Newmarket area are encouraged to begin rounding prices up or down to the nearest five-cents as of February 4, 2013.
Residents can return pennies to banks indefinitely as long as they are rolled. Check with your financial institution on penny redemption.
The Canadian Government announced in the Economic Action Plan 2012, that the penny would be phased out of the Canadian coinage system due to its excessive and cost of production relative to its face value.
The phase out comes as a savings of $11-million annually for taxpayers.
Guidelines issued by the Federal government state that business can round, either up or down, to the nearest five-cent increment.
A survey by the Retail Council of Canada reported that more than 56-percent of retailers plan on using the voluntary government guidelines.