Determinants of Zakat Payment: The Stakeholders’ Perspective

Some Islamic countries worldwide integrate zakat application for wealth distribution in their fiscal policy. Some of them also use zakat distribution to lower the poverty rate among the muslim community. Even though zakat remains a compulsory practice for muslims, its total collectible amount stays substantially below the collectible amount of tax in muslim countries. This paper examined the determinants of zakat payment in one of the East Coast states in Malaysia based on the stakeholders’ perspective. The questionnaires were distributed among academicians in three public universities in that state. The data was analyzed using univariate and multivariate methods. The finding showed that a good perception on zakat management would lead to the payment of zakat to the zakat agency. On the other hand, a bad perception on zakat management leads to the payment of zakat directly to the recipients. The research also found that the more favorable perception of zakat distribution, collection, and sufficiency of information provided to the stakeholders, the more likely the zakat payment will be made to the zakat agency. To reiterate, a positive correlation exists between a good perception of zakat management and the attitude of paying zakat to the agency.