Zakāh Compliance Behaviour on Income Among Muslim Youth in Klang Valley

Tajuddin, Teh Suhaila; Azman, Aza Shahnaz; Shamsuddin, Noraini

doi:10.22452/js.vol24no3.5

Cited by 8 publications

(6 citation statements)

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“…When a Zakat institution understands ways to instill trust in Zakat payers, the economic development of Muslim states could be strengthened (Kashif et al , 2018). Although payers’ trust is vital for Zakat institutions, as its absence could undermine their effectiveness, available evidence from Muslim states, including Malaysia and Pakistan, indicates that this trust in official Zakat channels cannot be guaranteed (Kashif et al , 2018; Mustafa et al , 2013; Tajuddin et al , 2016). For instance, the Pakistani government has adopted some stimulating strategies, such as nominating banks to automatically collect Zakat funds from the accounts of Zakat payers in the month of Ramadan (fasting month); however, it is documented that Zakat payers withdraw all their balances from banks before Ramadan, so that banks fail to deduct the appropriate amount.…”

Section: Introductionmentioning

confidence: 99%

Does trust in zakat institution enhance entrepreneurs’ zakat compliance?

Bin-Nashwan

Abdul-Jabbar

Aziz

2021

JIABR

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Purpose Although zakat is a principal way to redistribute wealth, a unique practice designed to achieve a sustainable Islamic economic and social system, zakat institutions and agencies in most Muslim countries still suffer from the perplexing issue of low zakat collections, ascribing this to the level of compliance among zakat payers. To provide more insight into this lacuna, this study aims to examine the role of trust in zakat institution through the relationship between socio-economic determinants (i.e. religiosity, moral reasoning, peer influence and system fairness) and zakat compliance decisions. Design/methodology/approach From a typical Islamic country, Yemen, a random sample of 274 entrepreneurs was drawn for a self-administered survey. To estimate and analyze the compliance model, SmartPLS structural equation modeling was used. Findings The results show that all hypothesized direct relationships are supported. Importantly, the trust-moderated interactions of religiosity, moral reasoning and peer influence on zakat compliance are significant, although its interaction with zakat system fairness is not. Practical implications The results should be helpful for policymakers and responsible institutions in Muslim communities to understand how different levels of trust can play an important role in Zakat payers’ compliance to boost or erode zakat funds. This research also contributes important inferences for managers about the necessity of inculcating religious and moral values among zakat payers, formulating a fair system and embarking on sensitization programs in society. Originality/value The research enriches the scanty literature by validating a viable compliance model drawing on the socio-economic theory of regulatory compliance. Moreover, the model integrates the moderating role of trust in socio-economic perspectives of zakat compliance.

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Section: Introductionmentioning

confidence: 99%

Does trust in zakat institution enhance entrepreneurs’ zakat compliance?

Bin-Nashwan

Abdul-Jabbar

Aziz

2021

JIABR

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“…This means that the degree of knowledge of zakāt and its conditions has no influence on the intention of paying zakāt . These results are opposite to previous studies (Pangestu and Jayanto 2017; Sukri et al ., 2016; Tajuddin et al ., 2017; Ghaouri et al. , 2023).…”

Section: Discussionmentioning

confidence: 99%

The determinants of institutionalization of Zakāt: the case of Morocco

Yerrou,

Achmaoui,

Bezoui

2023

IES

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PurposeMuslims have several religious obligations; the payment of a defined sum to the deprived part of the society is one of their financial obligations called Zakat. The institutionalization of this obligation has been the focal point of several research studies, however the Moroccan context has been studied by very few researchers. Therefore, this research aims to study the institutionalization of Zakat in the Moroccan context. Design/methodology/approachIn this paper, the authors try to drive focus to the determinants of the payment of Zakat to a specialized institution in Morocco (institutions whose main activity is the management of zakat funds), through 302 questionnaires that have been administrated on Moroccans and partial least square (PLS) approach.FindingsThe results show that the intention and payment behavior of Zakat by Moroccans depends on the quality of the zakat institution's quality of services, its location, the competence and availability of personnel, the use of technology, the shari'ah compliance of the institution’s activities and the trust by showing professionalism in the management of Zakat funds and disclose information.Research limitations/implicationsThe lack of relevant data covering the number of Zakat payers in Morocco, their potential contributions and the amounts paid each year, slows down the progress of this project as it hinders the ability of state officials and decision-makers to assess the potential zakat funds that are currently in circulation, and thus makes it hard for them to attribute financial support to such project. It also makes it hard for researchers to get direct access to Muzzakis.Practical implicationsThe existing literature shows immense interest in the implementation of institutions who can manage the Islamic social instruments especially zakat. However, the lack of relevant payer data of Zakat in Morocco and other jurisdictions who have not yet institutionalized zakat slows down the progress of this project and hinders any progress. Thus, the initiating point of such institutions in Morocco and in other countries who have not yet launched this project, requires knowing what determines the behaviour of Zakat payers and their choice of paying zakat to an institution. The results of our research help give insights on the determinants of zakat institutionalization from zakat payers point of view. These results are useful to the state policy makers.Social implicationsLike other neighboring countries, Morocco must introduce Zakat into its social system in order to better manage the funds that will enable the tackling of serious social problems such as poverty.Originality/valueIn contrast to the widespread and extensive literature available in analyzing the determinants of donations and volunteering from a conventional perspective, the parallel analysis of these same concerns in social Islamic systems is still in its infancy and so is the implementation of institutions related to zakat and other traditional Islamic social instruments such as waqf.

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“…From these figures it can be concluded that the community in Medan Tebung District by 88 percent is reluctant to pay zakat through BAZIS / LAZ agencies and 12 percent are willing, Second: From the results of a questionnaire of 100 respondents with various context conditions in the community in Medan Tebung District. Already know the function of zakat quite well, but the community hopes that bazis / LAZ diamonds are more In another study conducted by Tajuddin et al, (2015) employers accept positively the rules, total rejection is a negative view of the entrepreneur against the regulation, entrepreneurs tend to reject the regulation.…”

Section: B Literatur Reviewmentioning

confidence: 99%

The Influence of Income, Education, Consumption and Islamic Corporate Governance on Muzakki's Decision

Septiana

2022

Islamiconomic: j. ekonomi n.a.

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Muzakki's decision could have an important role in terms of knowing people’s preferences or tendencies in terms of whether to prefer to pay zakat in formal institutions such as BAZNAS, LAZ, Dompet Dhuafa. or prefer to directly give to mustahiq. This study has limitations in terms of focusing only on analyzing the influence of variable income, education, consumption, and Islamic corporate governance. This research focuses on analyzing the influence of income, education, consumption, Islamic good corporate on muzakki decisions in choosing where to pay zakat in Palembang city. The study data uses secondary and primary data, secondary data to determine the number of populations and samples obtained from the Central Statistics Agency (BPS). This research variable is obtained by directly interviewing and using questionnaires as their intrusion in data collection. Analytical tools are used in analyzing using binary logistic regression. finding from this study shows that income is the deciding factor in the decision to choose where to pay zakat. While based on the results of partially variable tests showed that income, and Islamic Corporate Governance had a positive and significant effect on the decision of the place to pay zakat. While consumption has a negative and significant influence on the decision of choosing place to pay zakat. Overall variables independent (income, education, consumption, Islamic corporate governance) is able to explain the dependent variable (decision to pay zakat) of 83%. The remaining 17 percent was explained by variables outside the model or by other variables that were not studied.

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Zakāh Compliance Behaviour on Income Among Muslim Youth in Klang Valley

Cited by 8 publications

References 0 publications

Does trust in zakat institution enhance entrepreneurs’ zakat compliance?

Does trust in zakat institution enhance entrepreneurs’ zakat compliance?

The determinants of institutionalization of Zakāt: the case of Morocco

The Influence of Income, Education, Consumption and Islamic Corporate Governance on Muzakki's Decision

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