Measuring perceptions of Muslim consumers toward income tax rebate over zakat on income in Malaysia

• Main Authors: Al-Mamun, Abdullah, Haque, A. K. M. Ahasanul, Jan, Muhammad Tahir
• Format: Article
• Language: English; English; English
• Published: Emerald Group Publishing Ltd. 2019
• Subjects: HB126.4 Islamic Economics; HF Commerce; HJ2005 Income and expenditure. The budget
• Online Access: http://irep.iium.edu.my/76272/1/76272_Measuring%20perceptions%20of%20Muslim%20consumers.pdf; http://irep.iium.edu.my/76272/2/76272_Measuring%20perceptions%20of%20Muslim%20consumers_SCOPUS.pdf; http://irep.iium.edu.my/76272/3/76272_Measuring%20perceptions%20of%20Muslim%20consumers_WOS.pdf; http://irep.iium.edu.my/76272/; https://www.emerald.com/insight/content/doi/10.1108/JIMA-12-2016-0104/full/pdf

Abstract Purpose – The purpose of this study is to explore the variables that affect Muslim consumers’ perception towardstaxrebateoverzakatonincomeinMalaysia. Design/methodology/approach – A close-ended structured questionnaire was developed and a total numberof236validresponseswerecollectedthroughonlinesurveyfromtheMuslimsresidinginMalaysia. Findings – Thisstudyfoundthathalal-haramaspectofIslamicShariah,legalconsciousnessandreligiosity of Muslim consumers are positive significant factors for growing perceptions towards tax rebate over zakat onincomeinMalaysia. Research limitations/implications – This study will definitely play an important leading role for the policy-makersandacademiciansinunderstandingtheperceptionsofMuslimconsumers. Practicalimplications – ThisstudycanassistzakatandtaxauthoritiesinMalaysiafortakingcorrective actionstoadaptorimprovethecurrentpolicyonthebasisofitsMuslimconsumers’perception. Social implications – The findings of this study can reduce the gap of understanding among Muslims in thesocietybylettingotherpeople’sperceptionstowardstaxrebatethroughzakatsysteminMalaysia. Originality/value – As there are not enough studies in this area, this study will definitely play an important leading role for the countries or policy-makers or concerned zakat or tax institutions all over the world in capitalizing the practices which is highly and positively perceived by the Muslim consumers in Malaysia.