FACTORS THAT INFLUENCE THE ZAKAT COLLECTION FUNDS: A CASE IN KUANTAN

Transcription

1 FACTORS THAT INFLUENCE THE ZAKAT COLLECTION FUNDS: A CASE IN KUANTAN Mohd Asri Mohd Ali Mohd Danial Afiq Bin Khamar Tazilah Adib Izzat Bin Shamsudin Faris Ridhwan B. Faisal Shukri Nik Muhammad Farith Adruc B. Nik Adelin Wan Muhammad Syafiq B. Wan Zainol Zaman ABSTRACT Zakat is recognize as one sources of funds available in Islamic country and continuously has become part of studies for improvement. Although it is part of Muslims obligation to pay zakat, the amount collected recorded is lower compare to tax collections. The possible reason for this problem might be from the payer behavior and their awareness. The aim of this study is to investigate factors that influences zakat collection fund of the payer. For this study, data was collected using a survey questionnaire that was adapted and adopted from the previous study regarding the intention to pay zakat by payer. The main factors that analyze in this study were trust of zakat payer, level of understanding about zakat, and attitude on zakat. Further analysis found that the attitude has the highest score that might affected to the intention to pay zakat through zakat institution followed by the trust and level of understanding. Based on the survey, the findings indicate that participation on paying zakat through zakat institution is not only affected by payer attitude but also their trust toward institution to handle the zakat fund collected properly and also their degree of understanding about zakat The implication is that the effort that implemented by various party which is form government and also person close with the payer. The result from this study might contribute to the improvement by zakat institution for better system to help the poor and need. Keyword: Zakat, Zakat collection. INTRODUCTION Zakat is an obligatory commitment by Muslims to provide to those who are in need of dire help to sustain their livelihood. Musli ms are ushered to provide 2.5% of their current net worth to those who need it. This is usually done before the beginning of the month of Muharram, the first of a new year. For a Muslims to honor their responsibility of giving zakat is considered an act of w orship because it is portrayed as a form of offering thanks to God for the means of material well-being one has acquired. This not ion is brought up in the Holy Quran which stated that Zakat purifies assets and creates virtue. The benefit entirely is directed to t he poor in the Muslim community. In Islam, Zakat is paid to meet certain goals and functions. Islam brings forth zakat as means of a charity tool that can be used on eight types of group of people. Five of them are meant for poverty eradication such as the ne edy, the poor, the debtors, the slaves and the travelers in need. The remaining three are used for the heads of zakat administrative. Albeit these eight types of people have been mentioned in the Holy Quran, nevertheless the priority in the use of zakat funds has to be accorded to the alleviation of poverty through assistance to the poor and the needy. It is an effective means of redistribution of wealth on a yearly basis to help the poor and facilitate their attainment of self-sufficiency. The zakat institution in Malaysia is under the authority of the state government. The total zakat collection for 2013 exceeded RM2.2 billion, an increase from the yea r before, as quoted by Minister in the Prime Minister s Department Datuk Seri Jamil Khir Baharom. He said that according to data tabulated by the Department of Awqaf, Zakat and Ha j (Jawhar), the total collection for all 14 states in 2012 was RM1.9 billion. However, he felt that this was still low, compared to th e ratio of eligible payers and that it was insufficient to cover the needs of all zakat receivers which were also on the rise. Althoug h the amount looks rather big, the total number of receivers is much more than the funds available. The increase in zakat payers may be due to factors such as trust of zakat payer toward zakat organizations, level of understanding of payer, and zakat payer s attitude in paying zakat. On this matter, the state Islamic councils should carry out innovative approaches and play a proactive rol e to improve zakat management. Due to the demand of more efficient and effective collection of zakat funds in Malaysia, some o f the religious councils have all agreed to give rise to a corporatized institution that holds itself responsible to the matters of colle ctions. The aforementioned corporatized institutions include Pusat Pungutan Zakat (PPZ), Wilayah Persekutuan in 1991, followe d by Pusat Zakat Selangor, Pahang and Penang in 1995, and lastly PPZ Negeri Sembilan and Melaka in 2000 (Ahmad et. al 2006 ). It was followed by Tabung Baitulmal Sarawak in 2001 and the latest was PPZ Sabah that has been corporatized in Hence, the main objective of this study is to analyze the zakat collections and forecasting the trend zakat payment. Problem statement Recently, there was an issues raise relating misuse of zakat fund by an agent that were appointed by State Islamic Religious Cou ncils (SIRCs) as zakat funds collector. Regarding this issues, we can see that see that there is lack of efficiency in handling zakat funds that cause trust of zakat payer decrease. Therefore finding on the efficiency of the zakat institution is important in this rese arch since this issue is report due to inefficient management of zakat institution (Hafizah, Siti, Rahayu, and Siti Nur, 2016: 48). Other than that, the level of understanding on Islamic principles also influences the intention of Muslims to pay zakat. The religi ous beliefs also contribute to the factors that influence the collection of zakat (Fuadah, Ahmad, and Muhammad, 2015: 345). The re are some finding that payer did not pay zakat because they think they already paid their tax. This happen because there are lac 30

2 k of understanding on zakat collection. Attitude to pay zakat is related with individual belief about the personal impact of outcom es. Based on Nurul, et al. (2012) has stated that payer s intention to pay zakat is influenced by his attitude towards the attributes i nherent in zakat paying, by the influence of others closest to him, and also by his perception of the behavioral control that can bo th be promoting and hindering factor in paying zakah. This study is to examine the reason why the collection of zakat funds is still having problem. In other word, this study discussing whether the system implement in zakat collection, appropriateness in zakat handling, and the understanding about zakat can affec t the payment of zakat by the payer. Significance of the study Malaysia Government as the medium has appointed Zakat institutions for zakat payers and zakat recipients in collecting and distributing zakat efficiently. These zakat institutions are given the trust and honor of collecting and distributing zakat responsibly and in the best interest of those in need. The factors that influence zakat collection funds can be measured through the increase or decrease of zakat collections year after year. Moreover, this study has indicated that the issues with regards to the shortage and surplus of zakat funds can be quantified and measured with relation to their respective factors. This study analyses the data that was collected through questionnaires as primary data and is being used in this study to identify the factors that influence zakat collection whether significant or insignificant. It is believed that the use of zakat funds for income generation programs can reduce the poverty problem besides fostering sustainable economies. Most previous studies confirmed that the utilization of zakat funds for income generating activities, such as setting up small and cottage industries and providing necessary training for poor communities, will improve income and reduce the poverty rate. Through this program, zakat funds can finance the economic activities of the eligible recipients based on their skills and capabilities. Lastly, the effectiveness of zakat in helping the poor is depends on the method of distribution and also the purpose of it. This method however, needs to be strengthened and analyzed from time to time so it will serve the purpose to help the poor to have a better life. Often, there are various and interesting issues occurred in zakat management, collection, distribution and poverty field which may gain interest from researchers of Islamic scholar as well as economic researchers. This study not only explore in-depth for those issues, but may also allow researchers to suggest solutions and produce new knowledge to solve issues related to zakat. LITERATURE REVIEW Previous Study on Zakat Payment. Issues in Malaysia Hafizah et al. (2016) found that there was an issues relating how zakat collection funds was misuse by agent appointed by State Islamic Religious Council (SIRC) as zakat funds collector. This misuse factor is related to how zakat institutions handle and played their role as a medium of paying zakat by payers. The institutions are medium for payers to pay zakat and responsible in distributing the funds that collected from zakat payers to the recipient that entitled for receiving zakat which is asnaf. For the record, although the collection zakat has increasing but the funds collected are unbalanced with amount that distributed to the asnaf. That problem is the reason why the previous researchers study about how the funds being handle by the institutions and lead to the finding about the issues of misuse of funds by the agents of SIRC that responsible as a collectors. All this finding from the previous research has leads to the major factors that affect intention to pay zakat by payers through zakat institutions which is payer s trust. The institution has failed to increase the level of trust of the payers against zakat institutions. The issues of misuses fund has made the payers trust to pay their zakat through institutions decreasing. There was finding from previous research that show some individual payers refused to pay their zakat through institutions. They prefer to pay zakatdirectly to the asnaf rather than pay to the institution of zakat. From the journal of Mohamad et al. (2016), when zakat payers perceived that the institution is not doing enough in helping the poor, they will cease to pay zakat through the formal channel and distribute them directly to the eligible recipients. In the study of Fuadah, et al. (2015) also identify that one of the factor that would affect the intention to pay zakat by payers are their level of understanding on Islamic principles. There was some finding that payers of zakat have misunderstood about tax and zakat. They thought since they already paid their tax so that they do not need to pay their zakat. It is because they did not fully understand what is the meaning of zakat thus failed to differentiate it from tax expenses. Zakat and tax is different and the studies about their difference can be seen in Hj. Musa (2013) where the conference was held to discuss about the difference between zakat and tax. In those conferences it is said that zakat is obligatory on the Muslims while tax is a civil obligation as a Malaysian citizen. Other than that, the awareness of the payer type of zakat they need to pay also part of the level of understanding. In Malaysia, there various type of zakat such as zakat al-fitr, zakat on business, zakat on income, and etc. That is among of zakat that people use to pay but there are many other type that they need to know and obligate to pay. Attitude to pay zakat is related with individual belief about the personal impact of outcomes. Based on Nurul, et al. (2012) has stated that payer s intention to pay zakat is influenced by his attitude towards the attributes inherent in zakat paying, by the influence of others closest to him, and also by his perception of the behavioral control that can both be promoting and hindering factor in paying zakah. Issues in Other Country As we can see, all the issues above were about issues that happened within Malaysia. But there are also other research done by outside researcher about the same issues that has been raise in country other than Malaysia. For example in Indonesia, there were an issues raise about zakat potential. According to Muhammad Firdaus, et al. (2012) states that factor influencing willingness to pay zakat routinely are payer s routinely read religious publication, their believe in divine rewards, their believe paying zakat will help them in earning their living, the find pleasure in helping the needy and they are well-educated. Still in the same research, the researchers also state that one of the problems that may affect zakat potential was the weaknesses of management of 31

3 zakat in Indonesia. In other research conduct by Laila Abdullatif (2012) study about the zakat collection issues in Middle East country such Kuwait, Sudan, Pakistan and etc. In these studies it states that the circumstance cause problem about zakat in those countries was an ineffective and inefficient administrative law of zakat collection by state and lack of coherence in a state s legal philosophy on zakat. Most of the content in these research was talking about zakat organization manage and handle zakat by collecting and distribute them. Almost all the problem state has connection with the weaknesses of the state s authorities to organize zakat. HYPOTHESIS DEVELOPMENT The hypothesis has been make from reviewing that tell about factors that we predicted that influences the zakat collection funds. This research is to show that whether there is factor that effect the intention to pay zakat by payer abide by the trust of zakat payer to amil, level of understanding zakat payer, and attitude of the zakat payer. Based on the previous study, the hypothesis was made in order to find out the significant relationship between trust of zakat payer to amil, level of understanding zakat payer, and attitude of the zakat payer. H1: There is significant relationship between trust of zakat payer toward amil and the intention to pay zakat. Based on Oyong Lisa (2015), ordinary people feel that the law applies only to circles in the Ministry of Religious only and does not apply to Muslims as a whole, because only employees of zakat institution are directed to collect zakat and divide it among themselves. In [15,14] A.J.I. Jones suggests that trust is a thruster s belief about some agent s property such that the thruster knows that the agent may fail to fulfil this property, while the thruster also believes that in the specific situation where he is the agent will fulfil this property. It could define that the logical trust is based on standard belief that complies with the assumption that people is not in an exceptional situation where the agent does not fulfil the property Robert (2016). According Sani (2016), issue of trust is playing a high role as it give effect to intention to pay zakat. Significant Number of researchers reveals that trust has a positive relationship with commitment and Intention (Morgan & Hunt, 1994; Anderson & Weitz, 1989). From Siti Ngayesah (2016), there are several factor that lead to trust problem that occur when payer want to pay zakat to amil which are reputation of the institution which show significant role in influencing the institution and contact personal which is contact personnel have who also been found to have a strong positive influence towards the corporate image of service firms in the hospitality industry (Nguyen, 2006).Based on past research Hafizah (2016) and journal Sani Adamu (2016) has proven that there is a significant relationship between trust of zakat payer to amil can influence to intention to pay zakat. H2: There is significant relationship between level of understanding of zakat payer and the intention to pay zakat. The second variable is level of understanding of zakat payer. Level of understanding of zakat payer is use in this study as less knowledge about zakat and felt that the process of distribution is vague and the information regarding to the zakat distribution is unclear (Wahid et al., 2009, p. 1). Zakat is not like charity. Zakat is primarily a form of worship; it is a duty to God and a demonstration of one s willingness to place their absolute submission to God over their material concerns. The relatively graphic punishments listed in the hadiths demonstrate that failure to pay zakat is seen as a betrayal of God, rather than of society. Mohammad Akram Khan (2013) argues that the absorption with creating an alternative to Western systems has jeopardized the creation of a distinct field of Islamic economics, reducing it to a restatement of Islamic teachings in modern economic jargon which misrepresent the understanding about zakat by letting jargon overshadow the unique nature of zakat. Based on previous research, there are several factors that affect level of understanding of zakat which one of it is internal factor from zakat institution itself. According to Abdul Rahim (2006), zakat practitioners need to change their mindset and be opened to new techniques in administering zakat (Abdul Rahim, 2006, p. 95). The inefficiency and ineffectiveness of zakat management performed or in other words under potential performance by the zakat institutions become limited (Sadeq; 1995; Masudul Alam Choudhury & Sofyan Syafri Harahap, 2008, p.615). This occurs because of several problems including lack of management expertise, lack of commitment, lack of information to give information to payer resulting lack of understanding about knowledge of zakat. The other reason is the low of knowledge about zakat itself. The zakat payer does not have knowledge about basic foundation of information about zakat needs in order to pay zakat which include zakat term and condition, zakat calculation, zakat recipient, and zakat legal system ( Mohd Safri, 2006). A research has been made and from research made by Fuadah (2015) and Armas E. (2016) prove that there is significant relationship between level of understanding and the intention to pay zakat. H3: There is significant relationship between attitude and intention to pay zakat. Attitude can be defined as the degree of which the person has favorable or unfavorable perception in performing the behavior (Ajzen, 1991). From Farah Mastura (2015) An individual who has a positive attitude toward performing the behavior will enhance the person to execute the desired behavior. In investigating zakat compliance behavior, attitude is among the important factors that should be investigated because understanding the person attitude will assist zakat institutions in finding ways to raise zakat collection in the future. (Fishbein and Ajzen, 1975) stated that attitude will influence the person behavior. Behavior means an individual holds positive or negative attitude toward a given behavior it is expected that person will have a positive or negative intention toward performing a stipulated task (Saad & Haniffa, 2014; Fidiana & Triyuwono, 2013; Mohsin, 2013). Based on Mohd Haikel (2014), with regard to an attitude, it is one of the factors showing that it does affect a person's intention to do something, and in response to this, the researchers have examined various aspects that can shape the attitude. Among them are the belief and evaluation as described by Dharmesta (2008, in Muafi, 2011). According to Raedah (2011) and Sani (2015), there show that behavior and attitude give positive relation in intention to pay zakat. It also has been proven by previous research by Husna (2009) entitled Intention to Pay Zakat on Employment Income among Manufacturing Employees in Penang which the 32

4 study showed that attitude and behavioral control had significant effect on the intention to pay zakat. This study revealed that in general, the theory of planned behavior can be used to predict the intention to pay zakat so that it can be used by zakat collecting organizations to increase the zakat received. Diagram 1: Schematic Diagram of the Theoretical Framework RESEARCH METHODOLOGY This study aims to investigate the intention of practicing zakat among government and non-government workers in city center of Kuantan. This study tries to identify the level and degree trust of zakat payer to Amil. Not only that, this study aims to grasp the level of understanding and knowledge of zakat payers. The study uses questionnaires as the major instrument to collect data because it can be self-administered. The questionnaire is a structured technique for collecting primary data in a Survey Research Method. It is a series of written or verbal questions for which the respondents provides complete and accurate information.the research population is Kuantan residents and the samples are the government and non-government worker residing in city center of Kuantan. The reason for choosing workers are because there might be differences in kind of job which involve worker for government and private company in Kuantan and most of them have already entitled to fulfill their obligation in paying zakat. The questionnaires will be distributes to 200 respondents who are government and non-government workers and the data is procured from city center in Kuantan. The types of sampling method used for the purpose of this research paper are simple random sampling and cluster sampling method. First, to determine the sample that we use for our data, we use simple random sampling to select our group of subject for study from a larger population. It is because each individual are chosen to entirely by chance and each member population has an equal chance of being include in the sample. After all 200 sample respondents are selected, we use cluster sampling to divide them into group of government and non-government workers. These types of sampling design are most useful when a heterogeneous group is to be studied at one time according to (Sekaran, 2012). The targets population is first divided into cluster. Our main respondents for the proposal are government and non-government workers residing in city center of Kuantan. The collection of data is through primary source which is questionnaire as major instrument to gather the data. The reason use questionnaire is use for method of gathering data is because it easy to conduct. The questionnaire has been distributed to the worker from private and government agency in area city center of Kuantan. Questionnaire had given directly to all workers who work at government sector, private sector and who make their own business. Any workers that still not respond in 1 to 2 weeks will be call up in other to obtain respond from them. Questionnaire that had been made to give to the worker based on the set of the questionnaire which was adopted from Ida Husna (2009) and Shahul Hameed (2000) had been used as a reference to determine employees perception on intention to pay zakat through institution. Questionnaire was given by direct contact to 200 respondents which are the worker in Kuantan. If the respondent was lack to response to the questionnaire, another alternative will be made to distribute the questionnaire which is through post it in the 33

5 Facebook by giving to the group Kuantan since in that group all people is live in Kuantan. It is because it will make faster to collect the respond information and can avoid from any possible result outcome since if respond or information gain will low can result to huge effect to measure or analysis for further research. We will collect questionnaire that respond at least between 180 respondents that answer back. Total respondent estimate for questionnaire is at least 190 practitioners. The sampling method are simple random sampling and cluster sampling which people who live in city center of Kuantan as main respondent. The reason sampling because it is known as a medium batch and they are who reading available to answer question that has been distributed. Measurement of variable To measure the variables of this study, the result from the questionnaire distribute to the payer will be use. There will be five section in the questionnaire comprise of the question about respondent s demographic for section A, section B, C and D will determine about payer s trust toward zakat institutions, level of understanding of zakat payer, and zakat payer attitude regarding their obligation to pay zakat and lastly section E that will ask question about the dependent variable for this study which is payer s intention to pay zakat. Demographic section consist of (nine questions), trust of payer (five questions), attitude ( five question), intention to pay zakat (five questions) were adapt and adopted from Ida Husna (2009), Raedah et al. (2011) and Maisarah (2011) The other independent variable which is level of understanding were adopt from Ram et al. (2011). The questionnaire will use Likert scale to measure all about this study variables, so the payer can choose from strongly agree to strongly disagree. Then those result that payer choose will be used to determine about the dependent variable which is zakat payer intention to pay zakat. RESULT Descriptive Results We set out to Bandar Kuantan in Pahang where we have a condensed city area that is populated with office buildings and workers within the city center. Within this city center area, we managed to get a diversified and balanced sample from distributing 200 questionnaires to the people situated in the city center. All of them responded and with it comes the results as following. From the results analyzed, we concur that majority of the respondents were Male (51.5%). With regards to age, they were mostly around the age range of years old (41.5%). More than that, we found that most of the people who paid zakat are of Malay race (85.5%). We also have evidence to support the stigma that not only Malays pay zakat. A majority of our respondents were without a spouse (43%). Furthermore, A substantial amount of our respondents were running a business and were self-employed (37%). Other than that, most of our respondents are qualified in education with a degree (39%). In accordance with that, majority of our respondents earned an income in the monetary range of RM2001 RM4000 (36%). Most of the respondents have paid zakat before (80%) and most of them also would prefer to pay zakat institution than asnaf (51%). The highest mean of level of understanding of zakat payer is which is that the respondents widely known that the rate of zakat income to pay is 2.5% for each year. Whereas the lowest mean is which is that few of the respondents know that tax rebate will be given when zakat is paid. The mean of trust of zakat payer is highest with 3.73 which is that most of the respondents prefer to pay directly to the recipient. Meanwhile, the lowest mean of trust of zakat payer is at which is that not every respondent prefers to pay zakat at zakat institution. The highest mean of attitude is which is most of the respondents believe that complying with my religion if I pay zakat. Whereas, the lowest mean of attitude is at which is they do not all know to calculate the amount of zakat that they need to pay. The highest mean of intention is which is that most of the respondents expect zakat to be distributed fairly among the poor people. The lowest mean of intention is which is that few respondents think that the zakat institution manage their organization well. The median for trust of zakat payer, level of understanding of zakat payer, attitude and intention is 4. Which means the data is balanced in mixing the respondents opinion of good and bad. Reliability Results During the study of this research, the results have shown a high agreement which are in regards to independent variables which were conducted in this study (Cronbach Alpha = 0.825). Therefore, it was consistent among all the respondents in responding to the given questionnaires. As seen on table 1 below. Table 1: Reliability Statistics Cronbach's Alpha N of Items Normality Results Results from Kolmogorov-Smirnov (K-S) test showed significant levels for variables which were less than 0.05 which indicates non-normality of significance level of less than 0.05 which showcases non-normality (Field, 2007). Therefore, non parametric statistical analysis is more favored to be utilized. Correlation Analysis Table 2: Spearman s Rho (Correlations) Intention Trust of zakat payer 0.466** Level of understanding of zakat 0.404** payer Attitude of zakat payer 0.610** 34

6 It has been shown that there exists a significant relationship between trust of zakat payer and intention to pay zakat through zakat institution (0.466). This result showed that there exists a positive relationship between the two variables. This result intrigued us because this results is also shown in a study by Ida Husna (2009) which found that there is a substantial influence on trust of zakat payer to intention to pay zakat through zakat institution. This means that the zakat payer does indeed trust the institution to be able to make a zakat payment through zakat institution. Furthermore, there was also signs of significant relationship between level of understanding of zakat payer and intention to pay zakat through zakat institution (0.404). This displays a positive relationship among the two variables. All the signs point to level of understanding of zakat payer have an effect to intention to pay zakat through zakat institution. These results are also consistent with Nur Bazirah Abu Bakar (2002) which proves that level of understanding with zakat payer has an impact on the intention to pay zakat through zakat institution. More than that, there is a strong and substantial significant relationship between attitude of zakat payer and intention of paying zakat through zakat institution (0.610). Therefore, this absolutely portrays a positive relationship between the two variables. These findings can be supported with a study conducted by Zainol and Kamal (2007) which suggests that the relationship between attitude of zakat payer and intention to pay zakat through zakat institution has been well established. Attitude of zakat payer has scored the highest correlation between the three independent variables at Whereas the level of understanding of zakat payer scored the lowest between the three independent variables with This finding has shown that the attitude of zakat payer was the most important factor which affects the intention to pay zakat through zakat institution. Meanwhile, the level of understand of zakat payer was the least important factor which influences the intention to pay zakat through zakat institution. Table 4.7 displays the summary of the research hypotheses. Table 3: Summary of the Research Hypothesis (H1-H3) No. Hypothesis Findings H1 There is significant Accepted relationship between trust of zakat payer toward amil and the intention to pay zakat. H2 There is significant Accepted relationship between level of understanding of zakat payer and the intention to pay zakat. H3 There is significant relationship between attitude and intention to pay zakat. Accepted DISCUSSION AND CONCLUSION This study is conducted as an attempt to know the factors that influence the zakat collection fund on Kuantan. Besides that, this study is also investigates whether there is a significant relationship between the independent variables and dependent variable. For this chapter will elucidate the conclusion regarding the research make and give good suggestion that will be handy for future research. There also some restriction that need to reconsider about from this study that will be discuss so that for future opportunities can know and can be avoid in future research. The result that discovered shows that trust to zakat institutions, understanding about zakat, intention to pay zakat and attitude are significant value to the dependent variable which intention of zakat payer to pay zakat through zakat institution. But the outcome for demographic test shows that there was no significant difference between gender, income education and age towards attitude, understanding about zakat and trust in intention to pay zakat to zakat institutions. However, there was significant difference between educations towards attitude, understanding about zakat and trust in intention to pay zakat to zakat institutions. Limitation It s common that each research make must have limitation issue that occur that can t be avoid when conducting the research study. For this study, there are several limitation issues that can be found during the research made. Firstly, lack of information need for research. The information such as research articles are limited and hard to get since there is less previous research had been done regarding to this research that we doing and mostly research found are from outside of country which out of topic that cannot be compare with our research topic made. Besides that, there also insufficiency of data need regarding to zakat collected in Kuantan, as our research focus to how management collect the zakat funds in Kuantan. Since the information is considered as confidential and cannot be disclose the information, the article regarding the scopes that try to research is limited for this area and hard to get. Secondly, the limitation is hard to get the information about the amount of zakat payer in Kuantan since the payer for zakat is considered as classified information and cannot be reveal by Pusat Kutipan Zakat Pahang. This study mainly focused on the factor that influenced zakat collection fund among zakat payers in Kuantan. But we do not get accurate number of zakat payers of zakat payers in Kuantan to sample our population resulting to incorrect of the result outcome. A statement I ve paid zakat before has been include in questionnaire to determine status of the respondent whether the respondent have pay zakat or not. Thirdly, lack of the helpfulness from respondents and lack of honesty in answering the questionnaires also present to difficulty in doing the research. Besides that, we also having a hard time to approach our main target whose are pay the zakat fund since some of respondent reluctant to give accurate of information and also some who refuse to answer the questionnaire. Fourthly, the limitation can be found is time restriction. The time given to complete the research is too short to make an accurate result. This is because many time waste when on creating questionnaire due to impossibility to find related articles and restriction to the city of Kuantan and hard to get respondent to zakat payer. Moreover, it is also time consuming and very costly to do this 35

7 research because we have to give the questionnaire to zakat payers in Kuantan which locate far from our university. Since not many are reluctant to answer the question and some when sent Recommendations These are several recommendation can be made from result or information that get through this research. The result gets which from the research is very convenient for zakat institution especially for Pusat Kutipan Zakat Pahang to understand the truth about the complacency of payers toward them. Depending on that, the zakat management (Pusat Kutipan Zakat Pahang) can take an action by improving the zakat service that implement by them to zakat payers since this group play a main role to providing to zakat collection in Kuantan. Besides that, zakat institution can also give full disclosure about the information on distribution of zakat collection to public so that can make give all payers more trust to pay zakat fund to institutions. Moreover, future researcher can use this study in zakat compliance that can be one of the sources of material for research to enhance zakat collection in all over Malaysia state. Government also needs play important role to improve zakat collection for this country since our country itself is known as Islamic country. The country reputation can be underestimated if Islamic country but many people don t want to pay zakat. Government can improve the zakat collection by implying law give punishment to who don t want to pay zakat so that increase amount zakat payer in the country. Lastly, zakat payers should need the knowledge about zakat itself. Zakat payers can gain the knowledge through self-study from reading or take a class regarding it. Read a book or article can enhance more learning process to understanding more about zakat. If lazy to read, they also can go find a good teacher to teach more about zakat. 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8 Oyong, L., (2015). IMPLEMENTATION OF MANAGEMENT ZAKAT AS A LOCAL REVENUE. Journal of Asian Scientific Research, 2015, 5(8): Raedah, S., Noormala, A., Marziana, M. (2011). A STUDY ON ZAKAH OF EMPLOYMENT INCOME: FACTORS THAT INFLUENCE ACADEMICS INTENTION TO PAY ZAKAH nd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2nd ICBER 2011) PROCEEDING Ram A.J., Kamil Md.Idris, Zainol B. (2010), Peratusan Pembayaran Zakat Kepada Institusi Zakat: Sikap Peniaga Dan Kesanmya Terhadap Gelagat Pembayaran Zakat Perniagaan, Jurnal Syariah, Vol.17 No 3. Sani Adamu, M., Ram Aljaffri, S. (2016). THE IMPACT OF PUBLIC GOVERNANCE QUALITY, ACCOUNTABILITY AND EFFECTIVENESS ON INTENTION TO PAY ZAKAT: MODERATING EFFECT OF TRUST ON ZAKAT INSTITUTION. Sani Adamu, M. et al, (2016). International Journal of Management Research & Review IJMRR/Jan. 2016/ Volume 6/Issue 1/Article No-1/1-8 (ISSN: ) Sani Adamu, M., Ram Aljaffri, S. (2015). Moderating Effect of Attitude toward Zakat Payment on the Relationship between Moral Reasoning and Intention to pay Zakat. 3rd Global Conference on Business and Social Science-2015, GCBSS- 2015, December 2015, Kuala Lumpur, Malaysia Procedia Social and Behavior Science 219 ( 2016) Mohd Asri Mohd Ali College of Business and Accounting Universiti Tenaga Nasional, Muadzam Shah Pahang, Malaysia asri@uniten.edu.my Mohd Danial Afiq Bin Khamar Tazilah Faculty of Business & Finance Universiti Tunku Abdul Rahman (UTAR) Jalan Universiti Bandar Barat Kampar, Perak. afiqk@utar.edu.my Adib Izzat Bin Shamsudin(AC096924) Faris Ridhwan B. Faisal Shukri (AC096410) Nik Muhammad Farith Adruc B. Nik Adelin (AC092160) Wan Muhammad Syafiq B. Wan Zainol Zaman (AC096356) Bachelor of Accounting (HONS.) College of Business Management and Accounting Universiti Tenaga Nasional. 37