Yeah, everything priced at X.99 or X.96 cents will almost certainly just become X.95 cents. The whole purpose of making it near whole dollar but not quite is to make it seem cheaper and it definitely works psychologically. So in general we probably -will- be saving some cents on these types of purchases.
They could move to a system used by some small middle-eastern or eastern european markets and just give sticks of gum in place of small change.
"3.97 please. Oh, you're paying with a fiver? Well here's your change. That's 1 dollar and 3 sticks of Juicy Fruit. Have a nice day!"
All sales taxes are fed+provincial, sometimes combined into a unified rate. It's consistent within the province (no "city sales tax" type stuff AFAIK) but each province is its own kingdom in terms of total tax rate.
I doubt this will be a problem. From a business' POV, I would think that it should only affect things that aren't taxed, like basic food. Rounding would happen mostly after taxes, so I assume either businesses would keep track of rounding differences and take that into account when it comes time to remit their taxes, or simply ignore it and remit based on the non-rounded amount. Base prices should probably stay the same (that is, mostly ending with $.99 so that the amount the company themselves keeps is as high as possible while still retaining that psychological low price factor).
We also have 2 dollar coins as well, and last year we started replacing paper money with plastic. The Canadian 100 dollar bill is now plastic, and 50 dollar plastic bills are scheduled for this month... or maybe they're already in circulation? I dunno, I haven't seen any yet.
As for pennies... I still have tin containers full of these fuckers. I won't miss them at all.
Yess! No more pennies for me! I don't care if I lose 1-4 cents on a transaction.
As far as I am aware, it costs more than 1cent to manufacture a penny, which doesn't make sense. And since people are constantly losing them (since they are just a penny) they have to keep making more and more.
Next step is including the tax in prices displayed. New Zealand already has this AND no penny. We could learn from them.