Probability of Paying Zakat from Micro financing Project Returns

Abstract

The study aims to investigate the probability of paying zakat among participants or recipients of micro-finance scheme of Amanah Ikhtiar Malaysia. A survey is conducted on participants of Amanah Ikhtiar Malaysia scheme using convenience sampling in Perak and Kelantan. Data from the survey are analyzed using descriptive statistics and logistic regression. The results show that higher probability of paying zakat among respondents determined by small household size, lower per capita income, higher education level and those living in Perak. Thus, efforts should be taken by zakat institutions to well develop good and efficient methods of zakat collection among the participants specifically among low educated and higher income/return of the projects.JEL Classification: C31, C83, D64, I39, G23How to Cite:Duasa, J., & Zainal, N. H. (2020). Probability of Paying Zakat from Micro Financing Project Return. Etikonomi: Jurnal Ekonomi, 19(2), xx – xx. https://doi.org/10.15408/etk.v19i2.15113.