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

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.