Determinants of Zakat Payment: The Viewpoint of Stakeholders in Seremban

Abstract

Islamic countries widely recognize zakat as a significant means to promote equity in sharing wealth among Muslims. Despite the obligation of Muslims to pay zakat, the total amount collected is considerably lower than the amount acquired through taxes. Thus, this study aims to identify the determinants influencing zakat payment among Muslims in Seremban, Negeri Sembilan. It will provide a better understanding of the factors that shape zakat payment behavior in this district. The data collection method involved a quantitative survey using structured questionnaires administered to a sample of 400 Muslim residents in Seremban. The study utilized a range of statistical analysis techniques, including correlation and regression to examine the relationships between the determinants and zakat payment practice. The study found that convenience is the most significant determinant motivating individuals to pay zakat through zakat agencies. This finding provides valuable insights for zakat agencies, policymakers, and religious authorities in Malaysia to develop targeted strategies to increase zakat compliance behavior among Muslims. These may include improving religious education programs, implementing transparent reporting mechanisms, developing tailored outreach programs, leveraging technology to simplify and streamline the zakat payment process, and collaborating with community leaders to reinforce positive social norms in paying zakat.