Global Review of Islamic Economics and Business
Vol. 10 No. 1 (2022)

The Determinant of Indonesia Enterpreneur’s Intention to Pay Zakat: Does Government Support Matter?

Akhsyim Afandi (Faculty of Business and Economics, Universitas Islam Indonesia)
Heri Sudarsono (Faculty of Business and Economics, Universitas Islam Indonesia)
Rindang Nuri Isnaini Nugrohowati (Faculty of Business and Economics, Universitas Islam Indonesia)
Yunice Karina Tumewang (Faculty of Business and Economics, Universitas Islam Indonesia)



Article Info

Publish Date
02 Feb 2023

Abstract

This study aims to analyze the entrepreneur’s behavior to pay zakat and to formulate the role of zakat institutions such as the National Zakat Board (BAZNAS) and Amil Zakat Institution (LAZ) in improving total zakat collection. Total respondents in this research are 751 entrepreneurs across 28 provinces in Indonesia. Partial least squares structural equation modeling (PLS-SEM) was used to know the entrepreneur’s behavior in paying zakat. Attitude toward moral reasoning, influence of religious leaders, peer influence, zakat knowledge, zakat system structure, enforcement of zakat law, and government support affect the interest of entrepreneurs to pay zakat. However, the attitude toward zakat evasion and transparency of zakat management does not affect the interest of entrepreneurs to pay zakat. The role of the government is getting a spotlight in this study because of its significance in formulating relevant policies to increase the interest of entrepreneurs to pay zakat. The establishment and supervision of zakat institutions as well as the issuance of supportive regulation is considered important in this study.

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Journal Info

Abbrev

grieb

Publisher

Subject

Economics, Econometrics & Finance

Description

The scope or coverage of this International journal will include but are not limited to: Islamic Economics, Islamic Business, Islamic banking, Islamic capital markets, Islamic wealth management, Issues on shariah implementation/practices of Islamic banking, Zakat and awqaf, Takaful, Islamic ...