An Insight into the determinants of zakat on income in Kedah

Ariffin, Muhammad Irwan and Md Aludin, Muhammad Aufa and Rayan, Qadri and Abdikadir, Nour Abdihamid (2024) An Insight into the determinants of zakat on income in Kedah. International Journal of Zakat and Islamic Philanthropy, 6 (1). pp. 155-162. ISSN 2682-7530 E-ISSN 2672-7471

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Abstract

This paper explores the determinants influencing the amount of income zakat contributions in the state of Kedah. The data used are obtained from a literature review on past studies and interviews with Zakat Kedah Board (LZNK) officials. Income zakat compliance in Kedah is found to be influenced by the religiosity level, awareness and understanding on the importance of zakat, perception on zakat management, and the socio-economic status of the zakat payers. There are five factors which contributed positively towards the rise in income zakat collection in Kedah, which are the royal decree by KDYMM the Sultan of Kedah on obligatory salary deduction for income zakat, collaboration between LZNK and the state education sector, award of muzakki certificate and logo to appreciate zakat payers, varieties of zakat payment channels, and efficient mobile application to monitor zakat management system. Additional investigation into the number of income zakat payers and income zakat collection suggests that the increase in income zakat in 2021 is due to extensive margin while the increase in 2022 is due to intensive margin. Several strategic initiatives undertaken by LZNK to enhance income zakat compliance and improve zakat management system in the state are also discussed.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Zakat, Income Zakat, Islamic Economics, Zakat Compliance, Zakat Management
Subjects:	BPH Islamic Economics BPH Islamic Economics > BPH531 Zakat H Social Sciences > HB Economic Theory > HB126.4 Islamic Economics
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Economics Kulliyyah of Economics and Management Sciences
Depositing User:	Muhammad Irwan Ariffin
Date Deposited:	02 May 2024 15:41
Last Modified:	02 May 2024 15:41
URI:	http://irep.iium.edu.my/id/eprint/112020

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