Zakat and Tax: A Comparative Study in Malaysia: Zakat and Tax: A Comparative Study in Malaysia

This study discusses the concept of zakat and taxation. The objectives of this study are to: (1) ascertain the perceptions of Muslims in Malaysia about zakat; and (2) provide the current practices of zakat and tax in Malaysia by identifying the reasons why the Muslims are reluctant to pay zakat. The study argues that there may be a lack of regulation of the zakat institution in Malaysia, which limits the success of the objective of zakat. Finally, the findings of this study indicate that there is no proper collection and distribution process for zakat in Malaysia, so the amount of zakat should be deducted automatically from bank accounts, in addition to being regulated under the federal constitution.