Canada Post proposes to raise domestic letter mail postage rates by two cents in 2020 for goods weighing 30 grams or less. The pricing for stamps purchased in a booklet, coil, or pane would rise to $0.92 per stamp, up from $0.90 now. For letters and packages weighing more than 30 grams, there would be no change to the current first-class rate of $1.20.
The proposed increases are part of Canada Post's plan to generate $230 million in new revenue this year. If approved by the federal government, the hike would take effect on January 1, 2020.
Canada Post says higher operating costs are the main reason for the rate increase. But some industry observers say the company is trying to push smaller businesses out of business by making mailing expensive.
"They're killing off the small businesses that rely on cheap postal services because they can't afford to stay in business," said John Moore, president of the Association of Canadian Insurers. "It's a tragedy."
Canada Post denies it has any intention of driving away small businesses, but it is reducing service levels for large customers, including industries such as printing and publishing that use considerable amounts of mail. These reductions will mean longer delivery times for letters sent with regular postage.
According to Canada Post, average letter postage costs $0.98 per letter.
Canada Post has informed us that postal rates will rise on January 11, 2021. Postage will increase to 50.5C ($0.505) per piece for Personalized Mail (tm) mailing (machineable, up to 50g weight, standard dimensions and thickness). For other types of mailings, rates will remain the same or increase only slightly.
These rate increases are the first since 2014. They're needed to cover the costs of building new facilities and maintaining the existing network.
New residential addresses will be charged the higher rate while current addresses will not be changed. However, businesses can apply for a special exemption if they have less than $20 million in annual revenue or 25,000 square feet of floor space. If approved, the business will be charged the lower rate starting with its first renewal date after implementation.
Postal rates in Canada are set by the Canadian Parliament through the enactment of statutes. Since 2002, the government has had a statutory mandate to provide affordable and reliable post-office services. The Parliamentary Budget Office estimates that the cost of this service should not exceed 1% of GDP.
Since 2002, postal rates have increased eight times, with each increase being followed by competitive offerings from private carriers which lead to decreased use of traditional lettermail.
Back in March, Canada Post raised the cost of shipping a card in Canada from 63 cents to 85 cents, and that's only if you purchase your stamps in a pack. A single stamp costs one dollar. Increases were significantly greater for individuals mailing cards overseas, rising from $1.85 to $2.50 per letter. These increases took effect on April 1.
The price of postage increases annually by up to six percent (in January) to reflect inflation. It is printed on each stamp in small but clear letters when you buy them in booklets or at post office counters. If you order stamps online, they will be delivered by postal workers so there is no additional charge for this service.
Christmas cards make up almost half of all items sent through the mail, with friends and family being the most popular targets. They are given out by everyone from presidents to pizza men, but not by businesses - except for those who have to pay to send their messages out.
In fact, only people or organizations willing to spend money can be found in the mail every day. This includes advertisements, promotions, political candidates, and businesses. Non-profit organizations can also use the mail to reach out to members or donors, but they must be registered with Canada Post to do so. There are two ways to go about it: either register as a private carrier or as a bulk mailer.