Canada Post has proposed new postage rates for 2025, aiming to address rising costs in delivering letter mail across the country. The proposed changes include a 25-cent increase for domestic stamps purchased in booklets, coils, or panes, raising the price from 99 cents to $1.24. Single domestic stamps would increase from $1.15 to $1.44.The corporation has kept stamp price hikes minimal over the past decade, but it now faces significant financial challenges. Over the past 20 years, mail volumes have dropped by 60%, from 5.5 billion letters in 2006 to just 2.2 billion in 2023, while the number of addresses served by Canada Post has risen by over 3 million during the same period.From 2018 to 2023, Canada Post reported $3 billion in losses before taxes, including a $748 million loss in 2023 alone. Despite these struggles, stamp prices in Canada remain among the lowest internationally, prompting the need for a one-time 25% increase.Canada Post estimates the new rates would generate $80 million in additional revenue for 2025, helping to mitigate cost pressures caused by inflation and declining mail volumes. The rate increases, which are subject to regulatory approval, would take effect on January 13, 2025, after the busy holiday season.The increase is expected to have a small impact on households, amounting to approximately $2.26 per year. For small businesses, the estimated additional cost is $42.17 annually. Permanent™ stamps will continue to be valid at the current domestic postage rate.Canada Post encourages small businesses to take advantage of its free Solutions for Small Business™ program, which offers discounts on shipping and other services.Doug Ettinger, President and CEO of Canada Post, highlighted the importance of aligning stamp prices with service costs."Ensuring stamp prices better reflect the cost of providing the service is an important step forward and aligns with efforts being taken by postal services around the world," he said.The Hon. Jean-Yves Duclos, Minister of Public Services and Procurement, emphasized the importance of maintaining Canada Post's services despite the digital shift: "The Government of Canada is actively working with Canada Post to secure the long-term viability of this essential service."The proposed rate changes were published in the Canada Gazette for public comment. Along with domestic mail, the price of U.S., international, and registered mail would see similar 25% increases, pending regulatory approval.
