Iris appointed GST refund agent

PETALING JAYA: Iris Corp Bhd has bagged the coveted contract to be the approved refund agent foreign tourists under the Goods and Services Tax (GST) regime come April 1, 2015.
In a filing with the stock exchange, Iris said the contract awarded by the Royal Malaysian Customs Department will see it invest about RM155.09 million, for which it will be paid an administrative fee of 15% from the GST refund services.
The 6% GST is due to be implemented from April 1, 2015.
Iris has entered into a joint venture with Switzerland-based Global Blue S.A, which is the leading international provider of GST Refund Services for the purpose of the job. Iris and Global Blue will each own a 51% and 49% stake in the joint venture company, which has an authorised capital of RM5 million.
The three year contract comes with a further extension of two years subject to the performance of the joint venture company under the tender.
Iris opined that the implementation of the GST Refund Scheme is part of the company's core business in providing software and hardware security solutions and undertaking such projects for the benefit of the government of Malaysia and towards the company's growth.
It also believes the GST refund service Scheme shall contribute positively to the financial results of the group in the long run.
Global Blue has developed and acquired techniques, know-how, proprietary information, financing and operations expertise which allows for the business of GST refund services.
Iris said the implementation of the tender will be financed through internally generated funds and bank borrowings.
Iris was one of four companies reportedly eyeing the contract for the Tourist Refund Scheme. ManagePay System Bhd was one other listed company believed to be in the running.
Iris' share price rose 2 sen or 5% to 42 sen yesterday on news of the award. It was the second most-active stock of the day, with some 105.80 million shares changing hands. ManagePay closed down 2 sen to 21 sen yesterday.