Stamp Hike May Be Coming

Canadian stamp

CBJ — Canada Post is proposing a rise in the price of stamps by two cents to 92 cents — if purchased in a sheet of stamps.  The cost for a single stamp would remain at $1.07.

The Crown corporation says it expects the average cost to Canadians would be about 26 cents a year and the cost to businesses would be about $6.

If approved, the new rates would take effect Jan. 13, 2020.Last year, Canada Post delivered about three billion pieces of mail, a 44% decline from a peak in 2006, though that’s partly because of major work stoppages in the fall related to a labour dispute.

Meanwhile, an average of 174,000 new addresses are added in Canada each year, requiring Canada Post to deliver to more places.

The result, the Crown corporation says, is a drop in revenue with a before-tax loss of $270 million in 2018 compared to a profit of $76 million in 2017.

Increasing postage rates would generate $9 million in gross revenues according to forecasts by Canada Post.

@CanBizJournal

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