Covid-19 effects and determinants of entrepreneurs’ tendency to pay business zakat in Kedah

• Main Author: Shahnizam, Bakhtiar
• Format: Thesis
• Language: English
• Published: 2021
• Subjects: BP174 The practice of Islam; HF5001-6182 Business; HJ4771.6 Income Tax. Tax Returns.
• Online Access: https://etd.uum.edu.my/9998/1/s825784_01.pdf; https://etd.uum.edu.my/9998/

The collection of business zakat throughout the country was at a relatively good level before the outbreak of Covid-19 pandemic. However, it is a concern that the outbreak of Covid-19 will reduce the tendency of entrepreneurs to pay business zakat. This is due to the occurrence of Movement Control Orders (MCO) that limits the business hours and also a relatively limited radius of movement. Using the Theory of Planned Behaviour, this study revealed whether the theoretical foundations could explain the tendency of payers in discharging business zakat more clearly. This study aimed to examine the influencing factors to the tendency of the payer. The factors examined in this study were the frequency of zakat employee meeting with the entrepreneurs, knowledge related to business zakat, the effect of Covid-19 on the income of the entrepreneurs, religiosity, self-efficacy and perceived service quality. A total of 400 questionnaires were distributed to entrepreneurs and 147 questionnaires were answered by entrepreneurs which were used for further analysis. Questionnaires were distributed through ‘google forms’ and 12 district zakat officers in the collection section had helped to send them via WhatsApp application to business zakat payers. This study had used the analytical methods including independent T Test, One -Way Analysis of Variance (ANOVA), Pearson Correlation and Multiple Regression. Finally, this research concluded with suggestions and recommendations that can help Muslim entrepreneurs to have the tendency to pay business zakat by following the correct zakat calculation. Among the recommendations was that the Lembaga Zakat Negeri Kedah (LZNK) and the Government should assist in raising awareness of the obligation to pay zakat to the public, especially for business zakat. It was shown in this research that the five (5) independent variables were most significant with the dependent variables were frequency of zakat employee meeting with the entrepreneurs, knowledge related to business zakat, the effect of Covid-19 on the income of entrepreneurs, self-efficacy and perceived service quality.