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Maltese Union Wants To Get Rid Of Small Change: ‘It Burdens Businesses And Many Customers Reject It’

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The union representing small Maltese enterprises (GRTU) has urged Malta to phase out the use of 1c and 2c coins, warning businesses widely view them as nothing more than an administrative burden.

“Cash, in particular small change, costs quite a bit to businesses in terms of administrative costs,” GRTU CEO Abigail Mamo explained to Lovin Malta. “Businesses need to make sure they have enough cash in the till to hand out as change and they must then spend time counting it and collecting it to exchange at a bank. It’s an administrative burden, especially for businesses which don’t have coin counting machines.”

She noted that several consumers reject 1c and 2c coins anyway, often telling cashiers to keep the change, and that more business sectors are rounding up their prices.

As Mamo explained to The Times of Malta this morning, the GRTU is advocating a system that would see the final bill rounded up to the nearest 5c when paying in cash. Therefore, a bill of €21.32 will see consumers having to pay €21.30, while a bill of €21.37 will see them having to pay €21.40. Prices will not be rounded up for card transactions.

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Five EU member states have already phased out their 1c and 2c coins

Unike banknotes, national EU central banks are responsible for the issuance of euro coins, and indeed Finland, the Netherlands, Belgium, Ireland and Italy have already phased out 1c and 2c coins.

Mamo said that the Maltese Central Bank should back such a move, given that it regularly urges the GRTU to encourage its members to shift away from cash and towards card transactions.

However, it is likely to be a tricky move for such a cash-dependent country, and the Finance Ministry warned five years ago that it will “fuel perceived inflation”, given that it will lead to minimal price increases for some items.

What do you make of this proposal?

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Tim is interested in the rapid evolution of human society and is passionate about justice, human rights and cutting-edge political debates. You can follow him on Instagram or Twitter/X at @timdiacono or reach out to him at [email protected]

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