After a significant drop in the number of letters sent in the country, Canada Post is proposing to increase its rates by 25%, bringing the price of a stamp purchased in a booklet to $1.24.
That’s a 25-cent increase over the current price of a stamp. A necessary adjustment, according to Canada Post, which said it lost $3 billion before tax between 2018 and 2023, in a statement released Friday.
The new rates are expected to come into effect on January 13, 2025, and are expected to generate approximately $80 million in additional revenue for the Crown corporation.
“Each year, we deliver fewer letters, but we have to deliver them to more addresses, which puts significant pressure on the Company’s costs, in a context of persistent inflationary pressures,” it reads.
According to the press release, the volume of Canada’s lettermail service has declined by 60% over the past 20 years, while the number of addresses has increased by more than 3 million over the same period.
The rate increase will result in additional expenses of $2.26 per year for the average Canadian household, and $42.17 per year for the average small business, according to Canada Post.
“More needs to be done to address the significant long-term structural and financial issues facing the Corporation.”, acknowledged Doug Ettinger, President and CEO of Canada Post, through the press release, stating that the Crown corporation will take measures to ensure the continuation of its services.