New Democrat MP Pat Martin introduced a private member's bill to kill the penny Wednesday.
Martin said getting rid of the coin would save Canadians millions annually.
In 2007, Martin said it cost $130 million to produce 1.2 billion pennies -- mainly because there are so few of the coins in circulation.
"Making cents, in fact, makes no sense at all ... most Canadians believe the penny is an expensive nuisance," he told reporters.
He said the coins tend to end up "underneath people's beds, in cookie jars and old biscuit tins."
Under Martin's plan, the price for those paying cash would be rounded to the nearest five cents. If a consumer paid by credit card, the price would not be rounded up or down.
The penny was introduced in Canada in 1908 and Martin said that both a birthday party and a funeral should be held for the coin.
"Often next to cash registers in coffee shops and retail stores there is a little dish of free pennies," said Martin.
"You don't see a dish of free loonies, that's because loonies are worth something, pennies simply aren't."
The chances of the private member's bill succeeding is slim since the majority of them fail.
A spokesman for Finance Minister Jim Flaherty told Reuters that no changes were planned for the penny.
McGuinty reacts
In Toronto, Ontario Premier Dalton McGuinty said Wednesday that Canada should get rid of the penny because it just "ain't what it used to be."
"Go talk to cashiers and ask people how eager they are to receive pennies or to deal in pennies," he said. "I just think that a nickel is probably more practical."
McGuinty joked with reporters that his anti-penny stand may trigger protests.
"I've just created the impetus here for a pro-penny movement,'' he said.
"They'll be marching on the front lawn next week I'm sure. McGuinty's against the pennies. I've already dug myself in deep here. There's no way out.''
Australia, France, Spain and New Zealand have already abolished the penny.
