Exploring the Impact of Attitude, Religiosity, Moral Obligation, Self-Efficacy and Subjective Norm on the Compliance Behavior of Income Zakat

Yusuf Haji-Othman,Masri Azrul Nayan,Mohd Sholeh Sheh Yusuff

doi:10.6007/ijarbss/v11-i9/11199

Yusuf Haji-Othman, Masri Azrul Nayan + Show 1 more

Open Access

https://doi.org/10.6007/ijarbss/v11-i9/11199

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Abstract

Despite a religious decree on the compulsory position of zakat on employment income in Malaysia, many Muslims still fail to fulfill their religious obligation to pay. Although there has been an increasing trend in the collection of business zakat, paddy zakat, and income zakat, there were some Muslims in Kedah who have not paid zakat to Kedah State Zakat Board (KSZB) so much so that the present increase in the collection of zakat is still not sufficient for distribution to all zakat recipients because of the increasing number of zakat asnaf. There is a rising trend in the collection of zakat. Yet, it is still insufficient to cover all zakat recipients, reflecting the efficiency (or the lack) of the Kedah State Zakat Board (KSZB) management. Studies on zakat compliance have shown mixed and inconclusive evidence regarding the determinants of income zakat compliance. Therefore, this study explores the impact of attitude, religiosity, moral obligation, self-efficacy, and subjective norm on the compliance behavior of income zakat in Kedah. This study employs the quantitative approach where this study collects primary data using questionnaires to determine significant determinants of compliance behavior of income zakat. This study reveals that attitude, religiosity, moral obligations, and self-efficacy are significant determinants of compliance behavior of income zakat in Kedah. However, this study finds that subjective norm does not significantly influence the compliance behavior of income zakat in Kedah. This study hopes to provide evidence that could be used as guidance for suitable policy and measures by Kedah State Zakat Board to improve zakat collection in the future.

Highlights

The National Fatwa Council agreed upon a consensus on the 22nd June 1997 that income zakat is compulsory for every Muslim individual who has fulfilled the conditions of perfect title, nisab, and hawl (Abdul Aziz & Abdullah, 2013)
This study reveals that attitude is a significant determinant of compliance behavior of income zakat in Kedah
The issue which arises is that zakat collection, including income zakat, is still low, which hinders the effectiveness of zakat in playing a more significant role in the state of Kedah

Summary

Introduction

The National Fatwa Council agreed upon a consensus on the 22nd June 1997 that income zakat is compulsory for every Muslim individual who has fulfilled the conditions of perfect title, nisab, and hawl (Abdul Aziz & Abdullah, 2013). While most of the employees paid income tax which is a legal obligation, they did not comply with zakat payment which is a religious obligation (Saad et al, 2010; Bidin et al, 2009; Bidin & Idris, 2009). One of the states in Malaysia, gazette the compulsory zakat employment income on 19 April 1986 under section 38(2) of the Kedah Islamic Law of Administration 1962 of the Government Bill No 146 (Tarimin, 1995). Despite a religious decree on the compulsory position of zakat on employment income in Malaysia, many Muslims still fail to fulfill their religious obligation to pay

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