Page 102 - Dimensi Baharu Zakat di Malaysia

© DIMENSI BAHARU ZAKAT DI MALAYSIA
ISBN 978-967-2959-04-5

PREVIOUS DISCUSSION ON ZAKAH ON BUSINESS
The collection of zakah from business entities has been over the
years steadily increasing. It is believed however that there are bigger
amount still untapped. Razaly et al. (2013) have demonstrated in
their study which found that only 3,983 business enterprises (4.5
percent) out of 87,617 business registered in Johor have paid zakah.
A study in Sabah also shown similar pattern whereby only 183
traders out of 629 registered Muslim’s Small Medium Enterprises
(SMEs) have paid their due (Abd Malik et al., 2015).
There are several factors that influence companies to pay zakah.
These include internal factors of the companies and efforts initiated
by the relevant zakah authorities (Saad, Idris & Bidin, 2009a; 2009b;
Wahab and Borhan, 2014).
The internal factors include the fulfillment of the zakah duty by
companies, which depends upon the level of iman (faith) of its
owners/employees and their knowledge and awareness of the duty
to pay zakah (Saad, Farouk and Kadir, 2020; Awadh et al., 2020;
Awadh, Abdul-Jabbar and Aziz, 2019; Wahab and Borhan, 2014;
Idris, Bidin and Saad, 2012). It is also believed that companies
would pay more zakah if the government increased their efforts to
persuade or compel them. The provision and enforcement of laws,
as well as the tax rebates facility, are believed to be among the
needed government initiatives. As for the zakah institutions, it was
suggested that their management needed to be improved. In this
way, they could enjoy better governance, which may indirectly
persuade payers to contribute more (Saad, Idris & Bidin, 2009a;
Saad, Idris & Bidin, 2009b, Wahab and Borhan, 2014; Khamis &
Yahya, 2015). Other study found that subsidy removal moderates
the influence of political instability on zakah payment behaviour
among Small Medium Enterprises (Obaid, Ibrahim and Udin, 2020).
On the contrary, it is suggested that legal enforcement had no
influence on compliance of zakah (Awadh, Abdul-Jabbar and Aziz,
2019; Idris, Bidin & Saad, 2012).
As for the financial institutions, there are significant number of
banks (slightly over 50 percent) have been paying their due. Bank
Rakyat in Federal Territory for example has paid its due amounted

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