Tuesday, July 16, 2019

Plastic Bag Charges In Canada

In Canada some stores like Walmart charge customers for plastic bags at 0.05 Cents per bag.

There is a hole in the Government on Plastic Bag Taxation.

This is how it works....Canada has TWO CURRENCY SYSTEMS....Cash and Plastic (Credit / Debit).

Canada has also "done away" with the "Penny" or 1 Cent piece. 

When you buy a plastic bag the bag plus tax comes to 0.06 Cents....0.05 Cents for the bag + 0.01 Cents for the tax.

If you want to save money in Canada ALWAYS use Cash when buying plastic bags because the cash rounds down the price after tax for the bag from 0.06 Cents back to 0.05 Cents.

What that means is if you use cash you will not get charged the tax on plastic bags because since they have no penny the cash transaction rounds back down to 0.05 Cents and cancels out the tax.

If you pay by Debit/Credit you will be charged the 0.06 Cents for the bag PLUS Bank and Interac fees.

In Canada it is best to use Cash.

You will not be charged tax on Plastic Bags.

If you use "plastic" you will be charged tax plus bank fees.

You can see this when you buy non taxable food items only at Walmart and you buy bags, you will be charged 0.01 Cents tax per plastic bag on your food items.

The Canadian Government is losing millions of dollars per year on cash transactions on plastic bags because of the two currency systems.

All cash rounds to 0.05 Cents and the 0.01 cent transactions are on credit / debit transactions only PLUS bank fees.

If you only pay cash for plastic bags you will not be charged the 0.01 cents per plastic bags or interac fees. 

If you really want to stick it to the government only use CASH when you buy plastic bags, the government will lose 0.01 cents in taxes per transaction on plastic bags because the currency rounds the tax down, specifically on food purchases.

That means that the government only gets the tax money for plastic bags on credit transactions only.

The government gets NO TAX money on cash transaction on plastic bags paid for by cash because the price of the bag plus tax rounds back down to cancel the tax off.

You can see this on food transactions where there is no tax, then if you use cash for the plastic bags the government will lost 0.01 cent per plastic bag transaction...that is millions of dollars per year to the government that they lose in tax money.

Remember when you go shopping in Canada to always bring your calculator and use cash to make sure your purchases ALWAYS ROUND DOWN and NOT UP.

Then they will lose the money on the cash transaction when it rounds down to 0.05 Cents, then they will lost another 0.01 Cents in tax money on the cash transaction for plastic bags.



No comments:

Post a Comment