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| Exploring the World of Postal
Rates |
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| Postal Rate NEWS for CANADA |
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2000, March:
Canada Post seeks
new method to set rates without approval |
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Reported in the Linn's Stamp News issue of
March 27, 2000. Copyright © 2000, Linn's Stamp News. Reproduced here by
permission.
Canada Post has applied to the Canadian government to change
the way that postage rates are increased in Canada.
Under the proposal,
the Canadian government would no longer have to approve domestic postage rate
increases.
John Caines, a spokesman for Canada Post, said that Canada
Post is asking the government to amend the Canada Post Act so that the rate
increase would be set at no more than two-thirds the rate of
inflation.
Basically the proposal follows the same formula Canada Post
already uses for rate increases, but. currently each increase requires
government approval.
The amendment would not mean an automatic rate
increase each year, however.
Any increase would also be based on the
financial position of the Canada Post Corporation and market
conditions.
Any increases under the new arrangement would take effect on
Jan. 1 of a given year and only after six month's notice of the new rates has
been given.
The last domestic rate increase was Jan. 1, 1999, when the
rate went from 45¢ to 46¢ plus 3¢ for the domestic goods and
services tax.
All postal rates within Canada are subject to the 7
percent federal goods and service tax because Canada Post is a corporation and
not a department of the Canadian government.
Canadian Stamp News
reported the proposal in its issue dated Feb. 29, 2000. |
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