Determinants of compliance to pay zakāt: an experience during the COVID-19 in Indonesia

Abstract

Purpose This study aims to investigate the determinants of zakāt payment compliance during the COVID-19 pandemic by investigating the effects of integrity and reputation on muzakki trust, as well as trust and religiosity on intention to pay zakāt in Indonesia through amil-zakāt institutions. Design/methodology/approach This research followed a quantitative approach using structural equation modelling involving 359 observant muzakki. Findings The results empirically suggest that integrity and reputation have a direct positive effect on muzakki’s trust. Religiosity and muzakki’s trust also directly and positively affect the intention of muzakki to pay zakāt. This study provides practical information on how Indonesian amil zakāt institutions continue to develop by increasing their reputation and integrity, which increases muzakki’s trust and intention to pay zakāt at their institution. Research limitations/implications One limitation of this research is the use of non-probability sampling. Future studies could consider employing probability sampling techniques that allow each member of the population to have an equal chance of selection, thereby improving the representativeness of the sample and the generalizability of the findings. Practical implications This study offers practical advice on how Indonesia’s amil zakāt institution could expand by improving its integrity and reputation, which will improve muzakki’s trust in the institutions and, as a result, Muslims’ intention to pay zakāt through Indonesia’s amil zakāt institution. As the findings indicate, high religiosity of Muslims improves their intention to pay zakāt. Originality/value This study sheds new light on the importance of integrity and reputation in amil-zakāt institutions. It also contributes to the development of intentional behaviour, which includes integrity, reputation, trust and religiosity.